At the end of the month the FHA will be reducing mortgage insurance premiums for the first time since 2001. After needing $1.7 billion from the U.S. Treasury last year, things have improved dramatically over the past year. The FHA’s Mutual Mortgage Insurance fund now has a balance of over $7.8 billion.

The large reserve balance was helped by improved loan performance and a rise in home values. The improving job market and economy have helped the housing market grow, and mortgage rates still remain low. At the end of the month, the FHA will lower the annual MIP by 0.50 percent for 30-year loans.

If you took out an FHA loan while MIP rates were at all-time highs, now is a great time to refinance. For those who currently have an FHA loan and have at least 3 percent home equity, you can reduce your MIP with an FHA refinance loan. If you have more than 5 percent home equity, a conventional mortgage refinance can help reduce your payments significantly.

U.S. housing prices have been steadily rising, but now is still a great time to buy a home. Best Rate USA FHA mortgage rates are currently under 3.5 percent, the lowest they have ever been. By participating in the HAWK (Homeowners Armed With Knowledge) program, you can lower your upfront and annual MIP, saving you lots of money in the long run. 

If you would like to save money on your monthly mortgage payments or have been thinking of purchasing a new home, now is the time to take advantage of low FHA rates. You can find rates online and talk to a mortgage expert to find out more information.