President Donald Trump cancelled an Obama administration plan to make home buying more affordable before it could take effect Friday.

  • Mortgage insurance fee decrease canceled
  • Would have cut the price of buying a home for FHA home buyers

A policy from former President Obama lowered mortgage insurance fees beginning January 27, 2017. That's a price buyers pay when their down payment is less than 20 percent.

Hours after being sworn-in, President Trump blocked it.

“There’s always some level of politics," said Dustin Owen, regional manager at Waterstone Mortgage.

According to Owen, the average loan is $200,000 in Central Florida. Based on that figure, Owen calculated the mortgage insurance premium would have dropped from $1,700 to $1,200 on an annual basis had the policy remained in effect. He adds the buyer's purchasing power would have increased.

"This was consumer friendly. Anytime you can put $41 a month back into the consumer’s pocketbook is huge," he said.  

The fee decrease was cancelled before it even started. Keller Williams Classic Realtor Jacquie Sosa says it didn't impact any of her clients.

"Don’t be discouraged by this news," Sosa said. "The interest rates are still low. Affordability is still very high, and all it comes down to is what is your monthly mortgage payment.”

Sosa says she's actively looking at homes with her clients.

“No one has come to us and said ‘oh my God this has changed we can no longer buy a house’ it’s just not the issue," she said.  

And Owen offered the following advice to potential buyers.

“We live in an ever-changing world and what we were doing yesterday isn’t necessarily what we can do today," he said. "If someone is looking at financing a home, whether it’s through a refinance or whether it’s through purchasing, the only definite is today. So today is the day they need to contact their local realtor or contact their bank or their favorite lender and see what they qualify for.”

Owen adds when it comes to interest rates, they can up, down, or stay the same. Potential buyers have to roll with the changes.

The proposed fee decrease applied to FHA loans.

While the policy could have lowered the cost to consumers, it also could have increased the cost for taxpayers.