Once again, there are some significant changes in store for FHA loans. In an effort to rebuild its reserves back to the 2% mark, the FHA mortgage insurance premium (MIP) schedule is changing for the 7th time in just five years. Not only will the monthly insurance increase, FHA announced a major revision regarding the cancellation of its mortgage insurance. Before getting into the specific changes about to take effect for FHA mortgages, here’s a brief recap of exactly who the FHA is and what the FHA does for homeowners. The Federal Housing Administration (FHA) is a government agency which insures mortgage lenders against loan defaults. The FHA does NOT lend money, they insure it. Since its inception in 1934, the FHA has insured over 40 million home mortgages, making the FHA the … [Read more...]
What are Interest Rates?
As we head into the Thanksgiving Day weekend, people are already forming lines, plotting their course for Black Friday and doorbuster deals. For the potential homeowners looking to buy and the current homeowners considering a refinance, they’re more interested in a map with a whole different set of coordinates - a map that can help navigate the complex world of mortgage rates. What are mortgage interest rates? What causes them to rise or fall? Is it the Federal Reserve? How much does the economy impact rates? What about the Presidential election? If anyone tells you mortgage rates are based on any single element, you may want to get your mortgage advice elsewhere. Interest rate movement is based on a large number of related factors including media headlines, … [Read more...]
Choosing the Right Mortgage Loan
With record low interest rates and housing on the rise, more and more folks have been venturing out to shop for a mortgage. In today’s ever-changing mortgage landscape you can rely on one major constant - nothing stays the same for long. This holds especially true for mortgage underwriting guidelines. New rules and additional requirements seem to change at any given moment. Figuring out which mortgage best suits your needs can be confusing, especially if you qualify for more than one type of loan. So what are the main types of loan programs available to consumers in today’s mortgage market? Conventional Loan Conventional loans are generally offered by a bank and are not guaranteed or insured by the federal government. Due to the lack of government backing, … [Read more...]
