As ordered by the Obama administration, the Federal Housing Administration is set to reduce the mortgage insurance premiums by 50 basis points, from 1.35% to 0.85%. Although hardly considered a “major step” toward recovering the real estate market from the recession, this action will help millions of families save billions in mortgage payments over the course of several years, helping support a market recovery.

Combined, this effort could save “billions” but in reality to the homeowner, it will only save about $900/year or roughly $75 a month. Even though any low or middle income family could use an extra $75 a month, when consideration of inflation and other necessities, it hardly makes a dent into the overall cost of purchasing a home. For those buyers who are less qualified for mortgage loans, the savings could be as little as $25 a month.

As significant as this change is in making homeownership more accessible, you still need to have a proper understanding of how your financial situation, down payment and credit history can affect the outcome of qualifying for a mortgage loan.