Biden Administration, Cuts Some Mortgage Fees , as Housing Costs Remain High.
Biden Administration, Cuts Some Mortgage Fees , as Housing Costs Remain High.
On February 22, the Biden administration announced
a change that could save homeowners an average
of $800 on home financing costs in 2023.
On February 22, the Biden administration announced
a change that could save homeowners an average
of $800 on home financing costs in 2023.
CNN reports that the change would impact
an estimated 850,000 homeowners, mostly low-
and middle-income, as well as first-time buyers.
The move, which affects mortgage insurance premiums
on loans insured by the Federal Housing Administration,
will reduce annual premiums from 0.85% to 0.55%.
CNN reports that the change comes
as part of an attempt to address the ongoing
housing crisis in the United States.
According to Marcia L. Fudge, the Secretary of Housing
and Urban Development, the change is expected to
increase access to homeownership for Americans.
According to Marcia L. Fudge, the Secretary of Housing
and Urban Development, the change is expected to
increase access to homeownership for Americans.
As we reduce housing costs for people
with FHA mortgages, we continue our
work to address longstanding
disparities in homeownership, Marcia L. Fudge, Secretary of Housing
and Urban Development, via CNN.
CNN reports that the cost of home financing
has skyrocketed in the past year, with mortgage
rates now double what they were in 2022. .
The high cost has priced out
many would-be homebuyers who
could no longer qualify for a loan.
CNN reports that the action is predicted to have a limited
impact on the housing market, as the higher cost of
monthly payments outpaces the savings.
In addition to this, only 811,362
out of 5.7 million total 2021 loans were
FHA loans, equaling just about 14.3%.