Clearly the US government is committed to fixing the housing market, and continue t0 enact new programs to help current homeowners, and future homeowners more easily afford their home.
Beginning June 11, 2012, FHA will lower upfront mortgage insurance premiums to .01 percent and reduce annual premiums to .55 percent for certain FHA borrowers, Carol Galante, acting FHA commissioner, announced today.
To be eligible for this new program, the loan will have had to be given before May 31st 2009. They are clearly trying to help people that have been diligent in making their home payments. Here is how much it will help these people,
Currently, 3.4 million mortgages endorsed on or before May 31, 2009 pay more than a five percent in interest. The average FHA-insured borrower is estimated to save approximately $3,000 a year or $250 per month.
Combine these new initiatives with the already climbing housing market, and we should continue to see very good numbers this year.