Blog 11017Housing advocates on Monday applauded the Federal Housing Administration’s (FHA) decision to reduce annual mortgage insurance premiums with home loan rates on the rise.

Housing and Urban Development Secretary Julián Castro said the FHA will reduce the premiums for most borrowers by a quarter of a percent, dropping them to 0.60 from 0.85 for most new mortgages with a closing date on or after Jan. 27.

FHA’s reduced rates are projected to save new FHA-insured homeowners an average of $500 this year.

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