fha mip: MIP Reduction Takes Effect - Some Other Considerations
- 01/27/15 07:04 AM
You are no doubt aware that the reduction in the FHA premiums for mortgage insurance went into effect yesterday, 01.26.2015. There are a number of people with FHA loans that might benefit from refinancing their existing FHA loan into another FHA loan with lower MIP. As stated in an earlier post entitled, "More Level Playing Field May Benefit FHA" the Wall Street Journal estimates that there are about 3,000,000 existing FHA borrowers who could benefit from refinancing into a new FHA loan. In an article appearing today in Mortgage News Daily a representative of Indecomm, a mortgage document management company, indicated … (10 comments)
fha mip: More Level Playing Field May Benefit FHA
- 01/23/15 02:07 AM
Private mortgage insurance premiums are higher for people with lower credit scores. FHA mortgage insurance premiums are the same for all FHA borrowers regardless of their credit score. The Urban Institute recently posted a blog that indicates that the break-even credit score with a 95% LTV has risen from a FICO score of 680 to a score of 740. The blog points out some interesting scenarios that may well benefit FHA and / or FHA borrowers. While the Obama administration estimates that approximately 2,000,000 new FHA borrowers will be benefited by the lower FHA MIP rates, the Wall Street Journal estimates that an … (12 comments)
fha mip: Washington Post Blasts FHA
- 01/21/15 07:22 AM
Did President Obama act too hastily in lowering the FHA Mortgage Insurance Premiums? According to an editorial in the Washington Post the FHA MI premiums should not have been reduced as the FHA has not restored completely its capital reserve, and as recently as September, 2013, FHA had to take a bailout of $1.7 billion from the federal governement to cover losses incurred as a result of "overly aggressive policies prior to the 'Great Recession'". While the FHA has been working to restore its capital reserves, the reserves stand at approximately 0.41% of the value of its portfolio as of the … (7 comments)
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Randy Kirsch
(NMLS# 1012303) Your Dedicated Mortgage Consultant
You are no doubt aware that the reduction in the FHA premiums for mortgage insurance went into effect yesterday, 01.26.2015. There are a number of people with FHA loans that might benefit from refinancing their existing FHA loan into another FHA loan with lower MIP. As stated in an earlier post entitled, "More Level Playing Field May Benefit FHA" the Wall Street Journal estimates that there are about 3,000,000 existing FHA borrowers who could benefit from refinancing into a new FHA loan.
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