All Posts Tagged With: "mortgage insurance premium"
FHA Mortgage Insurance Premium To Rise In 2012
Borrowers will pay more to get an FHA loan in 2012. The much-heralded payroll tax cut worked out by Congress will also raise the cost of an FHA mortgage by at least .2 percent and probably more in 2012. Think of it as a back-door tax increase. While the public was watching the payroll debate [...]
3Jan2012 | Peter G. Miller | 1 comment | Continued
Why FHA Premiums Should Not Be Raised
Will the FHA loan program raise its insurance premium for new borrowers? At first it might seem as though higher premiums are in order given that the FHA reserve fund — the Mutual Mortgage Insurance Fund or MMI — is well below the 2 percent required reserve. While that may be true, one must also [...]
5Dec2011 | Peter G. Miller | 0 comments | Continued
Will The FHA Go Bankrupt?
A new study says the FHA is likely to need a $50 billion bailout and perhaps as much as $100 billion. But is the FHA really in trouble? And if so, why? The paper, written by Joseph Gyourko, a professor of real estate and finance at the Wharton School of Business at the University of [...]
16Nov2011 | Peter G. Miller | 3 comments | Continued
Higher FHA mortgage premiums unneeded and unjustified
Moving with great speed, the FHA has decided to raise the annual mortgage insurance premium (MIP) fee by .25 percent. This will increase monthly FHA costs by some $30, an additional financing expense of around $360 a year for new FHA borrowers, individuals who typically are not among the rich or famous. And who will [...]
20Feb2011 | Peter G. Miller | 0 comments | Continued
FHA Insurance Premiums Set For Fall Revamp
Borrowers who get FHA financing after October 4th will be subject to a new insurance fee schedule — with some costs rising and some falling. The FHA has two insurance premiums. There’s an up-front mortgage insurance premium (MIP) paid at closing (or added to the loan amount) which is now equal to 2.25 percent of [...]
5Aug2010 | Peter G. Miller | 0 comments | Continued
Is The FHA Moving Toward 1% Up-Front Insurance Premiums?
Is the up-front insurance charge for FHA mortgages going to fall? FHA-backed mortgages are now a huge part of the financing landscape, but since April the up-front mortgage insurance premium has been 2.25 percent for most FHA borrowers. Now there’s some discussion regarding the idea of a 1 percent up-front MIP — but a higher [...]
17May2010 | Peter G. Miller | 2 comments | Continued
How Can I Pay Less For Mortgage Insurance?
Lenders require mortgage insurance when borrowers are unable to put at least 20 percent down when buying a home. The good news is that in some instances it may be possible to reduce mortgage insurance costs. Mortgage insurance comes in three basic flavors, FHA, VA and private mortgage insurance (MI). Let’s look at each. FHA [...]
22Feb2010 | Peter G. Miller | 0 comments | Continued
FHA To Borrowers: Gimme More!
The FHA has announced higher mortgage insurance premiums,stiffer downpayment standards for those with weak credit and more oversight for FHA-approved lenders. What’s going on here? A few things: First, FHA reserves are falling. The insurance program needs more money. What happens when insurance programs need cash? They raise premiums. In the case of the FHA [...]
20Jan2010 | Peter G. Miller | 1 comment | Continued
© Copyright 