The Chicago Association of REALTORS®, the “Voice for Real Estate” in Chicago since 1883, represents over 17,000 members from all real estate specialties including commercial sales, development, property management, appraisal, auctions and residential sales.
An estimated 2.4 million borrowers with Federal Housing Administration (FHA) loans can lower their mortgage costs by refinancing.
This is a result of the FHA reducing its insurance premiums in late January, according to a Housing Finance Policy Center at the Urban Institute study.
FHA has reduced its annual mortgage insurance premiums by 0.5 percentage points, which is expected to save the average borrower $900 per year.
The reduction is encouraging borrowing. Government-backed FHA loans spiked 76.5 percent immediately after it took effect.
Borrowers can save money by refinancing if the new mortgage rate and the new FHA premiums represent at least a 0.75 percent reduction in annual mortgage costs, the study found.