The Department of Housing and Urban Development (HUD) has announced changes in the interest rates for debentures associated with loans or mortgages insured by the Federal Housing Administration. For the period starting January 1, 2021, debentures issued under one section of the National Housing Act will have an interest rate of 3/4 percent, and under other sections, the rate is 1 3/8 percent. The rates are determined based on when the loan or mortgage was committed or endorsed and have been approved by the Secretary of the Treasury. The notice outlines these interest rates and provides instructions for insurance claims paid in cash.
Simple Explanation
The Department of Housing and Urban Development is changing the rates they pay when giving money to help people buy houses. For some special cases, the rate is 3/4 percent, and for others, the rate is 1 3/8 percent starting January 1, 2021.