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Move to cut FHA mortgage premiums confirmed

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Mortgage Professional America | 07 Jan 2015, 11:54 AM Agree 0
The White House has confirmed through executive action, the Obama Administration is directing the FHA to reduce annual mortgage insurance premiums from 1.35% to 0.85%.
  • Brett | | 07 Jan 2015, 01:34 PM Agree 0
    What they need to drop is the mortgage insurance for life crap. 20 years from now when your mortgage to value is 16% and you still have to have MI is ridiculous.
  • Realtor Terry | | 07 Jan 2015, 01:44 PM Agree 0
    I agree! MI should only be required while mortgage amount versus property value is above a certain percentage!
  • LO Tim | | 07 Jan 2015, 02:13 PM Agree 0
    They should really cut it back to the .55% as it originally was and at the same time cut the MI for life to back to how it originally was.
  • | | 07 Jan 2015, 03:59 PM Agree 0
    What we have to remember is that most FHA borrowers are first time buyers and they very rarely keep their mortgages long enough to meet the 22% requirement anyway. I agree it will be good if they lower it, but I don't know why they did not give HUD just a basic mandate to decide what the new annual rate would be (maybe HUD will decide to go lower.) I will be interested to see where this percentage came from? Tomorrow's speech on housing by the President will be interesting!
  • Stevenklf | | 08 Jan 2015, 03:13 PM Agree 0
    What about homeowners currently in an FHA do their payments get reduced as well ?
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