When the Obama administration announced that the Federal Housing Administration would be dropping its mortgage interest rates from 1.35 percent to 0.85 percent, many in Tucson’s real estate industry took notice.
“It’s going to make FHA loans for new buyers’ payments significantly less,” said Sunstreet Mortgage Vice President Matt Meister.
How much less?
“On a $100,000 loan, that half a percent will save the borrower $500 a year,” Meister said.
Apply that savings to an FHA loan covering the cost of an average house in Tucson ($206,882, according to the December Tucson Association of Realtors’ scorecard), and the savings would be around $1,000 annually.