Up to three million U.S. homeowners could save around $1000 a year through cheaper government-backed mortgages unveiled by the White House on Tuesday in an election year move to help the shaky housing market.
The step is the latest in a series by the Obama administration to aid struggling homeowners. It would reduce fees on mortgages the FederalHousingAdministration
insures so as to enable borrowers with higher-cost FHA loans to refinance.
The latest plan, which does not need congressional approval, reduces the costs on up-front FHA mortgage insurance premiums to 0.01 percent from 1 percent of a borrower's loan balance for refinancing under the "streamline" program. It also cuts the annual fee for these loans half to 0.55 percent.
It applies to loans taken out before June 1, 2009
For more information visit: http://www.msnbc.msn.com/id/46642154/ns/business-real_estate/ to view the article.
Comments(0)