Reblogged from: MarketWatch – Daniel Goldstein
The federal agencies tasked with boosting homeownership may have finally found their silver bullet when it comes to getting first-time and millennial home buyers off the fence.
Earlier this year, the Federal Housing Administration began reducing mortgage insurance premiums on its loans by an average of $900 a year. While the FHA loans typically come with low down payment requirements, they often have higher monthly payments as a result of the mortgage insurance that, unlike conventional loans, continues for the life of the loan, even when 20% equity is reached.
Now it appears the mortgage insurance premium reduction is having the desired effect.
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