All Posts Tagged With: "premium"
Are Big FHA Mortgages Really Risky?
Who will win and who will lose with FHA loan limits that were reduced as of October 1st? The answer may be surprising. In general terms there has been considerable support for lower FHA loan limits for several reasons. First, lower FHA limits mean more opportunities to sell private-sector loans. Second, the FHA has long [...]
13Oct2011 | Peter G. Miller | 0 comments | Continued
Less FHA Mortgage Loan Demand Undermines American Home Prices
A small change in FHA guidelines has now hit the market and the result has been both immediate and devastating. “Purchase applications fell last week, driven primarily by a sharp decrease in government purchase applications as new, higher FHA premiums went into effect,” said Michael Fratantoni, the Mortgage Bankers Association Vice President of Research and [...]
2May2011 | Peter G. Miller | 0 comments | Continued
FHA Banks Multi-Billion Profits, Seeks Less Success
First we learn that HUD will raise borrower costs and then we find out that the FHA program is already a multi-billion profit center for the federal government. On February 14th HUD announced that it is raising the annual mortgage insurance premium for new borrowers by .25 percent. That’s an increase of about $30 a [...]
27Feb2011 | Peter G. Miller | 1 comment | 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
How The VA Funding Fee Really Works
VA loans are built to minimize the financial impact on military members who qualify for the program. Credit and income requirements are generally more lenient than conventional loans and sellers are allowed to pay a sizable portion of closing costs and concessions. On top of that, the Veterans Administrations caps what veterans can pay in [...]
29Jun2010 | Chris Birk | 0 comments | Continued
How Can We Slash Mortgage Insurance Costs?
Private mortgage insurance companies are the private-sector equivalent of the VA and FHA. Such insurance allows individuals to borrow with little down — but only if they pay a premium for such coverage. How It Works Some important points about private mortgage insurance (MI) include: MI companies are state regulated, not federally regulated. State regulation [...]
26Apr2010 | Peter G. Miller | 0 comments | Continued
FHA Mortgage Basics
It all started in the 1930s when the government began insuring home mortgages. This was a big deal because it meant that homes could be purchased with little down and with loans that lasted more than five years — the norm at the time. Since the program began in 1934 the government has insured more [...]
9Dec2009 | Peter G. Miller | 1 comment | Continued
How Do We Get Rid of the FHA Mortgage Insurance Premium?
Question: I bought a home with FHA financing. We have a monthly insurance premium (MIP) with each payment. How do we get rid of this cost? Answer: When you bought your home you purchased with little money up front, perhaps 3.5 percent down. This means a lender put up as much as 96.5 percent of [...]
20Oct2008 | Peter G. Miller | 1 comment | Continued
Are Reverse Mortgage Premiums Justified?
While most of the mortgage marketplace is in a funk, reverse mortgages are a significant bright spot. HUD says it originated more than 107,000 reverse mortgages in fiscal 2007 — a figure up more than 40 percent from a year earlier. The HUD numbers are important because the FHA is generally said to insure about [...]
19Sep2008 | Peter G. Miller | 0 comments | Continued
Is Your Home Insurance Up To Par?
The end of the year is upon us and with it a series of benchmarks and yardsticks that are easy to measure. As one example, we are soon to make New Year’s resolutions — and not long after we are fairly certain to break them. But the turn of the calendar is also a good [...]
18Sep2008 | Peter G. Miller | 0 comments | Continued
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