Washington, DC
CNN
—
The Biden administration announced Wednesday a change that will save an estimated 850,000 home buyers — primarily low- and middle-income and first-time buyers — an average of $800 on home financing costs this year.
The move affects mortgage insurance premiums paid by new borrowers who take out loans insured by the Federal Housing Administration. It will reduce the annual premium from 0.85% to 0.55%.
It’s part of an ongoing effort to address housing affordability challenges in the United States. This change, which takes effect on March 20, is expected to expand access to home ownership, said Marcia L. Fudge, Secretary of Housing and Urban Development.
“As we reduce housing costs for people with FHA mortgages, we continue our work to address longstanding disparities in homeownership,” she said Wednesday.
Home financing costs have…
