Mortgage Insurance Premiums | The Federal Housing Administration (FHA) reduced mortgage insurance premiums by a quarter of a percentage point (from 0.85% to 0.6%) starting January 27. (0.25% for 30-year loans and 0.20% for 15-year loans.) HUD says that this should decrease borrowers costs by $500 a year on average (a $200,000 loan). While this may not seem like a lot of money, it equals $8,500 more buying power. (And this amount increases with the size of the loan). This should also offset the recent increase in interest rates.