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FHA Lowers Mortgage Insurance
As housing continues to improve the Federal Housing Administration (FHA) announced it will reduce the annual premiums new borrowers will pay by half of a percent. This action is projected to save more than two million FHA homeowners an average of $900 annually. The reduction will take the rate from the current 1.35 % to 0.85% and is expected to take effect towards the end of the month. FHA will publish a mortgagee letter detailing its new pricing structure in the upcoming weeks. This is great news for new buyers.
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