Mortgage Insurance due to Increase

By
Real Estate Agent with Realty One Group
The Senate is preparing to pass FHA Reform ACT of 2010. It has some good features that will improve mortgage financing; however, it also contains a very concerning mortgage insurance increase proposal that could have detrimental effects on the housing market. The proposed increase of FHA's annual mortgage insurance premium from 0.55% to 1.55% would reduce a homebuyer's purchasing power. Here's why: FHA's current annual premium is 0.55% (up from 0.50% just two months ago in April). A proposed 1.55% annual premium would have huge negative impact. For example, a borrower's monthly mortgage insurance premium on a $250k loan amount would be $115/mo. A 1% increase would raise the monthly mortgage insurance to $323 per month! This bill has been passed by the House and is headed to the Senate for passage. Please tell your Senator to say NO! Http://RalphandTricia.com
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Topic:
Lending / Financial
Tags:
fha
real estate
mortgage

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Rainer
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Chris Brown
Real Living Kee Realty - Shelby Township, MI

That just sounds crazy! do you have a link to the coverage or source? I want to send it to some people in the office. What a great post! Way to look out!

Jul 19, 2010 02:42 PM #1
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Rainer
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Ralph & Tricia Bredahl

Assoc. Broker,GRI,ABR,e-PRO,SFR
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