FHA Mortgage Insurance premium to be reduced

Great news for home buyers, especially those that just have enough for a down payment. President Obama will announce tomorrow that he is reducing the insurance premium from 1.35% to .85% on FHA mortgages. What does this mean to a home buyer that is getting a $400,000 mortgage? They save $167/mo. This will also allow the home buyer to qualify for more home and be more competitive to get the house they want….or just have a lower housing expense. Great news.