The Federal Housing Adminstration announced today that they will reduce insurance premium costs. The FHA also announced that mortgage companies must also provide help to military personnel who were wrongfully foreclosed upon. The program was also detailed by President Barack Obama at a press conference.
For all FHA mortgages that were originated before June 1, 2009 the FHA will reduce its Upfront Mortgage Insurance Premium, or Upfront MIP to .01% of the loan, instead of 1% - what it was previously. The annual mortgage insurance premium will be reduced from 1.15 down to .55%.