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FHA to Cut Fees, Lowering Rates for First-Time Home Buyers

  • Move to cut fees could be reversed by Trump administration
  • Republicans have said fee cuts could put taxpayers at risk
Photographer: Daniel Acker/Bloomberg
Updated on

The Obama administration cut mortgage-insurance premiums charged under a government program that’s popular with first-time home buyers with little money for a down payment, a move that may ease the burden of rising interest rates.

The annual fees the Federal Housing Administration charges to guarantee mortgages it backs are being cut by a quarter of a percentage point, the Department of Housing and Urban Development said in a statement on Monday. With the reduction, the annual cost for most borrowers will be 0.60 percent of the loan balance.