Articles Tagged With: APR (Annual Percentage Rate)

August 22, 2019

FHA Home Loans And Interest Rates: What You Should Know About Low Rates

At the time of this writing, what you should know about FHA Home loan interest rates includes the idea that interest rates at the moment are low for FHA mortgages, that the rates are subject to change, and that your credit report will play an important part in the rate you are offered. What do you need to know about FHA home loan interest rates in today’s housing market? FHA Loan Interest Rates Are Currently Very Low Some market watchers are quoting rates as low as 3.25%, and while that mortgage rate assumes a very well-qualified borrower, it is an indication of how low rates have gone in 2019. What’s good for the economy is often bad for mortgage loan interest rates, and the reverse can also be true. With | more...

July 2, 2019

Preparing For An FHA Mortgage? What You Need To Know About “Contingent Liabilities”

By Bruce Reichstein

If you are preparing for a home loan and want to buy a primary residence with an FHA mortgage, you should know what the FHA loan rules are for “contingent liabilities” which involve the borrower. A contingent liability is a financial obligation that the FHA loan applicant has co-signed for in the past or is otherwise potentially responsible for should the main borrower default on the financial obligation. The FHA loan handbook defines contingent liabilities specifically as follows: “A Contingent Liability refers to a liability that may result in the obligation to repay only when a specific event occurs. For example, a contingent liability exists when an individual can be held responsible for the repayment of a debt if another legally obligated party defaults on the payment. Contingent liabilities may | more...

February 21, 2017

FHA Appraisal Timing: A Reader Question

By Joe Wallace

A reader asks us a question about FHA appraisal rules this week in our comments section. “Buyers want my house but dont want to process the sale until the end of April. It is now Feb. 19th 2017. I dont have a problem with that but do want some kind of guarantee that they are going to buy it.” “They are going FHA. Should I ask them to have and pay for an appraisal & inspection now as a good faith issue? If I do hold the house for 2 months I am the only one to suffer if they dont buy. Also who does the appraisal and inspection if the loan is FHA?” As for the timing of the appraisal and home inspection, that would be up to the | more...

September 28, 2016

FHA Loan Mortgage Insurance Premiums

By Joe Wallace

Here’s a version of a common question we’ve been asked recently about FHA mortgage insurance premiums: “I closed an FHA mortgage on a house I purchased in December 2014. The following month FHA reduced the mortgage insurance premium (MIP). Can I get the lower mortgage insurance rate and a reduced monthly payment without totally refinancing my mortgage?” The FHA/HUD official site published a .pdf file that addresses this question directly. Back in 2015 the FHA lowered it’s mortgage insurance premium. The pdf states, “The reduction is effective as of January 26, 2015. Borrowers with case numbers assigned on and after January 26, 2015 will be eligible for reduced annual mortgage insurance premiums.” Note the specific date when the lower premiums become effective-borrowers who have loans prior to these dates will | more...

August 31, 2016

FHA Loan Debt To Income Ratio Rules: Student Loans

By Joe Wallace

When the lender is adding up an FHA loan applicant’s income and monthly financial obligations for the purpose of calculating debt ratios, there are some debts that can be more complicated than others. Student loans, for example, can be tricky because a borrower may have student loan debt that is in “deferred” status, while others may be paying on their loans at the time of the loan application or soon thereafter. Here’s a recent reader question on the subject: “I cannot find anything that talks about NON deferred student loans. I have a client with a $63 payment on their credit report ($25,000 student loan balance). The loan is NOT in deferment, he pays $63 per month. The u/w is telling me I must use the greater of 1% of | more...

July 25, 2016

Mortgage Rate Trends: Pushing Higher

By Joe Wallace

Since our last report, mortgage loan rates have pushed forward; they moved higher on both Thursday and Friday of last week. We have several scheduled economic data releases this week and a Fed meeting that could push rates further depending on investor reaction to them. At the time of this writing, 30-year fixed rate conventional mortgages are in a best-execution range between 3.375% and 3.625% depending on the lender. 3.5% is likely more common according to our sources but your experience may vary depending on a variety of factors. FHA loan rates are still holding in the best execution 3.25% comfort zone, but if upward movement continues we may see FHA rates break out into a range with 3.25% at the bottom end initially. Best execution rates assume ideal conditions; | more...

May 9, 2016

Mortgage Rate Trends: Moving Lower After Jobs Report

By Joe Wallace

Friday the much-anticipated Employment Situation Report had data that wasn’t as favorable as expected. That helped rates further recover some losses seen in late April, resulting in some market watchers to declare Friday’s gains as the “lowest in three years” (best execution) for some financial institutions. On Friday, 30-year fixed rate conventional mortgages were, best execution, in 3.625% territory. That’s down from a late-April range with 3.75% at the upper best execution end. FHA mortgage rates remain in a range between 3.25% and 3.5%. FHA rates tend to vary more among participating lenders, so it is a very good idea to shop around for the best rates. As always, best execution rates are not available to all borrowers or from all lenders. Your access to rates like these depends greatly | more...

May 4, 2016

HUD brings Fair Housing Charges Against New York Co-Op

By Joe Wallace

The month of April may have been Fair Housing Month, but the work of the Department of Housing and Urban Development continues in the cause of ending housing discrimination. One of the latest press releases from HUD involves an investigation of alleged housing discrimination in New York. According to a press release on the HUD official site, “The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging a White Plains, New York, co-op with housing discrimination for refusing to grant an exception to its policies that would allow a person with disabilities to buy a unit there. HUDs Office of Regional Counsel for New England, which has jurisdiction over the case, issued the Charge of Discrimination on April 26”. Such discrimination is not permitted under | more...

April 28, 2016

HUD Charges Massachusetts Landlord With Fair Housing Act Violations

By Joe Wallace

April is Fair Housing Month, and as the month winds to a close, there are still a variety of government actions involving violations of federal fair housing law-actions taken against landlords, lenders, and others associated with housing. We report on these issues as press releases are issued from the Department of Housing and Urban Development for several reasons. The most important of those reasons is to raise awareness of Fair Housing laws and to remind our readers that the first line of defense against violations of the Fair Housing Act is often found at the consumer level. Those who report housing discrimination complaints to HUD help end future discrimination as well as get government action on the case at hand. Fair Housing Act violations affect everyone–borrowers, buyers, renters, lenders, etc. | more...

April 4, 2016

FHA and HUD Kick Off Fair Housing Month

By Joe Wallace

April is Fair Housing Month, a time when efforts are made to raise the awareness of fair housing issues and federal law that protects those seeking a place to live from discrimination. That’s why the FHA and HUD began Fair Housing Month 2016 with the launch of a national media campaign designed to help the public, “to envision what communities with shared opportunity for all might look like. The new campaign is designed to further educate the public about their housing rights and the ideals behind HUDs new Affirmatively Furthering Fair Housing (AFFH) initiative” according to a 1 April press release. “The campaign, which was developed in partnership with the National Fair Housing Alliance (NFHA), will include print Public Service Announcements (PSAs) in various languages, television PSAs in English and | more...