lender: Does Your Client Really Need an FHA Loan???
- 11/02/13 03:50 AM
The demands on FHA spanning the past 5 years put into question the agency's sustainability of its loan program that insures mortgages. To better its financial position the FHA increased its monthly mortgage insurance premium and then, as of this month, new FHA mortgagees will carry the monthly mortgage insurance premium for life. Prior to this month FHA mortgagees could cancel their monthly MI once they had paid down below 78% of the original balance. And it is costly to say the least. On a $250,000 FHA loan, a borrower will pay $281.50 monthly, $3378 per year, or roughly $17,000 over 5 years. Needless to say, FHA … (0 comments)
The demands on FHA spanning the past 5 years put into question the agency's sustainability of its loan program that insures mortgages. To better its financial position the FHA increased its monthly mortgage insurance premium and then, as of this month, new FHA mortgagees will carry the monthly mortgage insurance premium for life. Prior to this month FHA mortgagees could cancel their monthly MI once they had paid down below 78% of the original balance. And it is costly to say the least.
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