BREAKING NEWS: HUD Reduces FHA Mortgage Insurance

FINALLY!!! HUD just announced that the mortgage insurance on FHA mortgages will be reduced by 30 basis points on most mortgage loans.

FHA mortgages typically have two forms of mortgage insurance. Borrowers pay for both an upfront premium, which is often added to the loan amount and financed over the life of the loan and an annual premium, which is paid monthly. The mortgage insurance which has been reduced is the annual mortgage insurance. [Read more…]

Mortgage Payment Breakdown

Your mortgage payment typically includes principal and interest and may also include property taxes, home owners insurance. This is often referred to as PITI in the mortgage industry (principal, interest, taxes and insurance). If you have less than 20% down payment or home equity, then you probably have some form of mortgage insurance as well (unless you qualify for a VA mortgage). Some portions of the mortgage payment may change over time. [Read more…]

Private Mortgage Insurance Pricier for Single Borrowers

Private mortgage insurance is required on conventional mortgages when there is less than 20% equity on a property, when the loan-to-value is greater than 80%. Private mortgage insurance (pmi) that is paid monthly automatically drops off the mortgage payment once the mortgage balance reaches 78% of the original loan amount. Private mortgage insurance premiums are intended to be risked based. The more equity or down payment on a home and the higher your credit scores are, the lower the premiums tend to be. [Read more…]

Dr. Carson sworn in as new HUD Secretary

Yesterday, Dr. Ben Carson was formally sworn in as the Secretary of HUD. Secretary Carson, from HUD’s press release, stated:

“”I am immensely grateful and deeply humbled to take on such an important role in service to the American people,” said Secretary Carson. “Working directly with patients and their families for many years taught me that there is a deep relationship between health and housing. I learned that it’s difficult for a child to realize their dreams if he or she doesn’t have a proper place to live, and I’ve seen firsthand how poor housing conditions can rob a person of their potential. I am excited to roll up my sleeves and to get to work.” [Read more…]

BREAKING NEWS: FHA Mortgage Insurance reduction SUSPENDED INDEFINITELY

As President Trump’s inauguration ceremony is in process, HUD has suspended the reduction of the annual FHA mortgage insurance indefinitely.  Mortgage Letter 2017-07 cancels Mortgage Letter 2017-01, issued by HUD just 9 days ago. [Read more…]

HUD’s reducing Mortgage Insurance on FHA Mortgages

iStock-000018668640XSmallUPDATE January 20, 2016: HUD has suspended the reduction to FHA mortgage insurance effective immediately.

HUD has announced today that mortgage insurance will be reduced on most FHA mortgages. FHA mortgages have two types of “mortgage insurance” the borrowers pay regardless of loan to value. There is the upfront mortgage insurance (currently 1.75% of the loan amount) that is typically added to the base loan amount and financed over the life of the loan and there is the annual mortgage insurance that is actually paid as part of the monthly mortgage payment. This reduction of 25 basis points is on the annual mortgage insurance premium.

[Read more…]

Mortgage Insurance Tax Deductible for 2015 and 2016

Money in pocketI’m receiving gleeful emails from various private mortgage insurance companies announcing that mortgage insurance will once again be tax deductible. This is thanks to the PATH Act extending certain tax benefits to eligible home owners.

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Lower FHA Mortgage Insurance + Low Mortgage Rates = FHA Streamline Refi’s

Money in pocketHUD recently reduced annual mortgage insurance premiums for FHA 30 year fixed rate mortgages by 50 basis points. The annual mortgage insurance premium is part of the monthly mortgage payment and 50 basis is a dramatic reduction. If you have a $400,000 loan amount, this is a monthly savings of $166.67 (400,000 x 0.50% divided by 12 months).

[Read more…]