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the federal housing Administration FHA has announced a new lower mortgage insurance premium MIP structure that is expected to help first-time home buyers in low to moderate income borrowers this change is docHub for those looking to purchase a home in the current real estate market as it will make home ownership more affordable for a broader range of potential buyers prior to the new policy FHA borrowers were required to pay an upfront premium of 1.75 percent of the loan amount along with an annual premium of 0.85 of the loan amount under the new policy The Upfront premium has been reduced to 1.0 percent and the annual premium has been lowered to 0.60 percent this translates to docHub savings over the life of the loan for borrowers the reduced MIP rates are expected to make home ownership more affordable for first-time home buyers and low to moderate income borrowers who may not have large down payments or a high credit score the lower premiums will make monthly mortgage paym