National Debt Relief Shares Good News About Mortgage Loans

January 22, 2015 (PRLEAP.COM) Business News
January 22, 2015 - National Debt Relief recently shared some great news in an article published January 20, 2015 that would greatly benefit people looking to take out a mortgage loan. The article titled "Good News For First-time Home Buyers" points out how aspiring homeowners might benefit from the recent changes in the mortgage industry.

The article starts off by pointing out how even at today's time, owning a house remains to be one of the greatest American dream. They picture either a nice lawn where the kids can play with dog or a penthouse that gives a spectacular view of the city. Whatever their preferences are, being able to hold the keys to their own house is a financial and life goal.

Aspiring homeowners looking to buy a house this year are in for a surprise.The article shares that the FHA mortgage insurance, which is meant to protect the government in case the borrower defaults, has reduced their rates. What used to be at 1.35% of a loan's value has now been reduced to 0.85%.

What this translates to is that if the loan amount is at $100,000. the previous rate would have meant a $1,350 insurance rate. But the new change would mean that the mortgage insurance payment would go down to as little as $850. This lets consumers save up a few hundred dollars and put it back in the budget.

The article explains there are credit worthy families looking to buy a home but a tight lending market shuts people out. With the reduction in the FHA mortgage insurance, it is estimated to benefit about 250,000 new buyers to buy a home. This means more people can reach their dream of having their own house.

The article also explains that for first time home buyers, Fannie Mae and Freddie Mac recently announced that they will begin backing mortgages requiring a down payment of as little as 3% of the home's price. To read the full article, click this link:

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