Tuesday, January 10, 2017

Mortgage News, FHA Loans Get Cheaper.

FHA loans drop .25% to help the stimulate mortgages after the rate increase.

U.S. Housing and Urban Development Secretary Juli├ín Castro said on Monday the Federal Housing Administration will reduce the annual premiums most borrowers will pay by a quarter of a percent. 

It comes into effect January 27th, 2017

The FHA is reducing its annual mortgage insurance premium by 25 basis points for most new mortgages with a closing or disbursement date on or after Jan. 27. The new rates are projected to save new FHA-insured homeowners an average of $500 this year, Castro said.

Higher mortgage rates since the election.

The secretary said consumers are facing higher credit costs as mortgage interest rates increase. So they definitely had to do something in regards to making loans cheaper for home buyers. In the end It all just kind of evens out.

Federal Housing Authority Has experienced growth.

"After four straight years of growth and with sufficient reserves on hand to meet future claims, it's time for FHA to pass along some modest savings to working families," said Castro.

"This is a fiscally responsible measure to price our mortgage insurance in a way that protects our insurance fund while preserving the dream of homeownership for credit-qualified borrowers."

The new rates come as the FHA enters a fourth straight year of improved economic health, the administration said. The FHA gained $44 billion in value since 2012.

"We've carefully weighed the risks associated with lower premiums with our historic mission to provide safe and sustainable mortgage financing to responsible home buyers. Home ownership is the way most middle class Americans build wealth and achieve financial security for themselves and their families," Ed Golding, principal deputy assistant secretary for HUD's Office of Housing, said in the report.

- Read "Mortgage Rates Are Disgusting Right Now."

This had to happen.

Moving forward I've predicted something like this would happen based upon the fact that mortgage rates have been increasing steadily ever since the election. The election itself has affected my income and I've now switched from refinancing to strictly reverse mortgages. I have the ability to do cash-out loans but with the rate-hike I have taken a liking to helping seniors stay in there home through the HUD approved version of a reverse mortgage. If you're thinking about refinancing please read "3 things you need to know before refinancing." Thanks for reading this update for your mortgage news.

- Read "5 Myths Of A Reverse Mortgage."

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I hope you enjoyed, reading this article. My name's Jon and I specialize in writing for current events, the wonderful world of mortgage banking and life in general. If you have any questions or maybe even featured on my articles feel free to reach out. By the way if anyone you know is looking to refinance or needs a reverse mortgage send them my way my friends! If you have any questions feel free to send me a message on LinkedInFacebook, or Instagram.

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Jon Arpon "Orange Countys Premier Mortgage Banker."
Reverse Mortgage Professional / Mortgage Banker NMLS 1447861, Company NMLS 7147
2030 Main Street, Suite 350, Irvine, CA 92614
Direct: 949.441.2048
Fax: 888.537.6148
Email: jarpon@americansenior.com

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