The FHA, the largest insurer of low-down-payment mortgages, just announced that it will raise mortgage insurance premiums by 10 basis points, or 0.1% on most new mortgages it insures. As an example, a borrower choosing a 30-year fixed rate mortgage and puts 5% down will now pay an annual insurance premium of 1.3% of their outstanding mortgage balance. It they put down less than 5%, the rate will be 1.35%. Premiums for jumbo loans will also be rising, but only by 0.5% or 5 basis points.
FHA says that it will require most borrowers to pay insurance premiums for the life of their loans, canceling a program put in place in 2001 that allowed the cessation of premium payments once their debt fell below 78% of the original balance.
Housing Beginning to Drive Economic Growth - Finally
In an article at CNNMoney.com, it is stated that economists are predicting that 2013 will be the year that housing lifts us out of the economic slump. More than half of economists surveyed for the article put forth this view. Due to the housing crash, there has been little building over the past six years, and this has resulted in low inventories.
As buyers return to the markets, builders art scrambling to ramp up their building activities and respond to demand for new homes. Pent-up demand and short supply is going to fuel economic growth in housing and the economy overall.
Another Hike in Mortgage Premiums from FHA
The FHA, the largest insurer of low-down-payment mortgages, just announced that it will raise mortgage insurance premiums by 10 basis points, or 0.1% on most new mortgages it insures. As an example, a borrower choosing a 30-year fixed rate mortgage and puts 5% down will now pay an annual insurance premium of 1.3% of their outstanding mortgage balance. It they put down less than 5%, the rate will be 1.35%. Premiums for jumbo loans will also be rising, but only by 0.5% or 5 basis points.
FHA says that it will require most borrowers to pay insurance premiums for the life of their loans, canceling a program put in place in 2001 that allowed the cessation of premium payments once their debt fell below 78% of the original balance.
Housing Beginning to Drive Economic Growth - Finally
In an article at CNNMoney.com, it is stated that economists are predicting that 2013 will be the year that housing lifts us out of the economic slump. More than half of economists surveyed for the article put forth this view. Due to the housing crash, there has been little building over the past six years, and this has resulted in low inventories.
As buyers return to the markets, builders art scrambling to ramp up their building activities and respond to demand for new homes. Pent-up demand and short supply is going to fuel economic growth in housing and the economy overall.