President Donald Trump blocked an Obama administration policy Friday that would have reduced the cost of mortgages for millions of home buyers. Here’s a look at what Trump’s first executive action means for your mortgage: What happened? In the first hour of Trump’s presidency, the U.S. Department of Housing and Urban Development sent a letter to lenders, real estate brokers and closing agents suspending the 0.25 percentage point premium rate cut for Federal Housing Administration-backed loans. The new rates, announced on Jan. 9, would have gone into effect on Friday. Who does the cut affect? The action will affect millions of homeowners with an FHA-backed mortgage. FHA backs about 16% of the country’s new mortgages. FHA loans offer easier credit requirements, lower down payments and smaller closing costs, according to the U.S. Department of Urban Housing and Development.
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