A look at FHA mortgage insurance premiums through the decades

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This chart shows how insurance premiums have changed throughout the years. A premium is what you pay in order to be insured. It’s interesting to see how this has changed. It gives insight about the economy as well. As the economy fluctuates so do insurance premiums along with other things. Economics is an important field to understand because of its real life applications.

Key Takeaways:

  • Up until this year, the Federal Housing Administration has not reduced annual mortgage insurance premiums since January 2015. But before that, there was long history in how the MIP has seesawed up and down.
  • On Jan. 9, the FHA announced that it is cutting its annual mortgage insurance premiums for the second time in two years, sneaking the cut in right before President Obama exits office.
  • The FHA said that it projects that its new premium rates will save new FHA-insured homeowners an average of $500 in 2017 alone.

“In 2015, the MMI Fund reached its Congressionally mandated threshold of 2% ahead of schedule, a feat that surprised many observers considering that it came after the Obama administration announced a 50 basis point cut in annual mortgage insurance premium prices in January 2015.”.”


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