The Federal Housing Administration is lowering its mortgage insurance fees in an effort to attract more first-time and middle-income homebuyers, according to the Los Angeles Times.
Annual premiums on new mortgages will drop from 1.35 percent to 0.85 percent of the total loan. Although the new rate is still higher than historical levels, borrowers will now save about $900 off their yearly FHA payment and as much as $2,000 for buyers in California.
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