Mortgage Insurance Rate Cut Could Cost Homeowners

An hour after Donald Trump assumed the presidency Friday, his administration indefinitely suspended a pending rate cut for mortgage insurance required for FHA backed loans, which are popular with first-time home buyers and those with poor credit. Marla Thomas, a mortgage loan officer for Inland Home Mortgage, told Michigan News Network the action will affect millions of homeowners

“It would have been so nice to offset that monthly NIP payment to help the homeowners because the mortgage rates are up,” Thomas said. “They’re up almost a full point since November 8. So, it would have been a nice offset to the rising rates.”

Thomas says the cut would have saved home buyers about $29 a month on a $200,000 mortgage.