The Federal Housing Administration (FHA) will reduce its annual mortgage insurance premium (MIP) for most new mortgages with a closing/disbursement date near the end of January, according to a recent announcement by Housing and Urban Development Secretary Julián Castro.
The rate reduction reflects the fact that the FHA’s Mutual Mortgage Insurance Fund is showing “improved economic health” for the fourth consecutive year. Read on to learn more about the decision and how HUD expects it to affect borrowers.