Chicago — The Federal Housing Administration on Friday spelled out details of its plan to lower mortgage insurance premiums, a day after President Barack Obama unveiled the effort to jump-start first-time home purchases.
For 30-year mortgages with less than a 5 percent down payment, the mandatory annual mortgage insurance rate of 1.35 percent of the loan balance will be cut to 0.85 percent. For FHA-insured loans with more than a 5 percent down payment, the previous 1.30 percent rate will be reduced to 0.80 percent.
