A U.S. Federal Housing Administration rule that took effect this week will increase monthly payments of people who rely on FHA-insured mortgages to buy homes. The rule lengthens the period during which borrowers must pay premiums for their mortgage insurance. The FHA backs nearly 14% of the residential-mortgage market.
The insurance premium that buyers pay in addition to their monthly mortgage payment traditionally expires once 22 percent of the principal loan is paid — usually in the first few years of a mortgage. Now, all new loan-takers have to pay the monthly premium for at least 11 years and up to the entire duration of their mortgage, according to the rule that went into effect Monday.
Full Article:
http://www.washingtonpost.com/business/economy/new-fha-premium-rules-mean-higher-monthly-payments-for-homeowners/2013/06/05/926cd722-cde1-11e2-8845-d970ccb04497_story.html
The insurance premium that buyers pay in addition to their monthly mortgage payment traditionally expires once 22 percent of the principal loan is paid — usually in the first few years of a mortgage. Now, all new loan-takers have to pay the monthly premium for at least 11 years and up to the entire duration of their mortgage, according to the rule that went into effect Monday.
Full Article:
http://www.washingtonpost.com/business/economy/new-fha-premium-rules-mean-higher-monthly-payments-for-homeowners/2013/06/05/926cd722-cde1-11e2-8845-d970ccb04497_story.html
No comments:
Post a Comment