U.S. President Barack Obama speaks about the housing market during a visit to a Phoenix neighborhood in Arizona January 8, 2015. At left is Housing and Urban Development Secretary Julian Castro. Seen next to Obama are David Adame (2nd R) and Edmundo Hidalgo (R) of Chicanos Por La Causa Inc., which is a local non-profit organization that owns the development
WASHINGTON (MarketWatch) — On a day when President Barack Obama spoke about his administration’s new housing policy, here are five questions, and answers, on the Federal Housing Administration’s decision to cut annual mortgage insurance premiums.
How much are we talking? There will be a 0.5 percentage-point drop in annual premiums, from 1.35% to 0.85%. The White House estimates this will save $900 a year for new borrowers.
The upfront premium of 1.75% is not impacted by this.
When?