Cary, NC – April 11, 2012 – (RealEstateRama) — HUD is requiring some changes in FHA Mortgage Insurance. The requirements are caused, of course, because the FHA Insurance Fund has taken a beating in the past few years, as more and more people with a FHA Insured Loan have gone into Foreclosure.
FHA doesn’t actually MAKE Mortgage Loans, just like the Veteran’s Administration doesn’t make VA Home Loans – they only Insure the Lender against default.
Technically, FHA doesn’t have “PMI” – the “official” accronym is MIP (Mortgage Insurance Premium). The Premium is charged in both an upfront fee, and an annual fee.
FHA announced that these fees are changing in April, for all properties – and again in June for properties that are in High Cost Areas.
They also announced a change in June of the FHA PMI charged for streamlined refinances. This change, due June 11, 2012 will reduce the FHA PMI charges SIGNIFICANTLY for folks who are refinancing from an FHA loan to another FHA loan, in an effort to reduce their monthly payments.
About Eleanor Thorne
I’m privileged to work with my husband, Steve Thorne, on the NC Mortgage Experts Team at a Community Bank in North Carolina.
We’ve been involved in Mortgage Lending since the early 1980’s. There is a vision that drives us to do what we do. Simply put, we want to help you create the financial strategy that allows you to live life to the fullest. That requires that together we establish goals, define priorities and determine what’s most important to you.
On any given hour of a day, mortgage lending experiences subtle shifts that can create huge forces of change for our customers. We are dedicated to a life of continually educating ourselves in the broad areas of economics, politics and financial planning… and of course we stay on top of the Mortgage Industry News too!