ACT NOW If You Are Considering An FHA Mortgage!
Change is a comin’! In a recent release from the U.S. Department of Housing and Urban Development, the subject line sums it up: “Revision of FHA policies concerning cancellation of the annual Mortgage Insurance Premium (MIP) and increase to the annual MIP”. The intention of these changes is to continue to strengthen the Mutual Mortgage Insurance Fund. To sum it up, there are 2 parts to the change that will affect consumers. Part 1: FHA Mortgage Insurance Premium Changes The FHA is an insurer of mortgage loans and, by law, it is required to maintain a 2% reserve in its Mutual Mortgage Insurance (MMI) fund. Currently, because of bad loans made last decade, the FHA’s reserves are -1.44 percent. In an effort to rebuild the MMI, therefore, the...
Read MoreFHA To Raise Mortgage Insurance Premiums On April 1,2012
Because of the continuing decline of the FHA insurance fund, not to mention projected futher losses; the Federal Housing Administration has decided to increase their monthly fee as well has the upfront mortgage insurance premiums. FHA will, once again, raise its mortgage insurance premiums April 1, 2012. All FHA mortgage applicants; first time buyers and repeat buyers will incur the higher upfront and monthly fees. Click here to see if you qualify for an FHA mortgage loan It has recently been announced by President Obama that the FHA Streamline is not going away, as previously rumored. The FHA Streamline is a program that lets borrowers who pay their mortgage on time to take advantage of lower interest rates without having go through the qualification...
Read More
Follow Us!