According to Phillip Molnar of the San Diego Union-Tribune, the Federal Housing Administration announced Monday that it will be decreasing the annual insurance premiums that borrowers must pay by a quarter of a percent. Now this might not seem like a very substantial amount but the FHA says that it will save the average homeowner $500 this very year. However, San Diego County will receive an even bigger impact from this seemingly small decrease since we have higher housing prices compared to the rest of the nation so our average homeowner will be saving $1,200 a year.
This rate change will go into effect for all homes in escrow after January 27th. Julian Castro, the U.S. Housing and Urban Development Secretary, said in a news release on Monday “after four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families.” Glad for it!
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