Blog Archives

Gov’t partnership to lower mortgages of military

Government partnership to lower mortgages of military

The Obama Administration announced a new agreement this week with five of the nation’s largest banks aimed at helping active-duty military service members save hundreds of dollars or more each year on their mortgage.

Under a 2003 law, active-duty service members can have their mortgage rates and some of their other debt fees capped at 6 percent. However, many military members aren’t taking advantage of benefits that could lower their mortgage payments. Read the rest of this entry

FHFA wants to expand mortgage access

FHFA wants to expand mortgage access

The Federal Housing Finance Agency (FHFA) announced that it wants housing finance giants Fannie Mae and Freddie Mac to provide greater support to low-income mortgage borrowers and refinancers.

FHFA, which is the regulator for Fannie Mae and Freddie Mac, outlined goals for 2015-2017 aimed at advancing that goal. It wants to ensure that low-income families account for 23 percent of the GSE’s purchases of single-family home mortgages. Also, the agency wants them to increase the share of their purchases that back mortgages in low-income areas with large minority populations, Reuters reports. Read the rest of this entry

FHA to eliminate ‘post-payment’ interest charges

FHA to eliminate ‘post-payment’ interest charges

The U.S. Department of Housing and Urban Development issued a statement recently that Federal Housing Administration (FHA) sellers won’t be charged a full month’s worth of interest if they sell their home early in the month.

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Mortgage Insurance (MIP vs PMI)

Mortgage Insurance (MIP vs PMI)

Often times when one is considering the idea of purchasing a home, mortgage insurance is forgotten about when considering their monthly payment.  When this happens, it can become a shock to the borrower.  Mortgage insurance is always important to consider whenever one doesn’t have a minimum 20% down payment.  There are two types of mortgage insurance depending on the loan program.  These two types are Mortgage Insurance Premium (MIP) for FHA loans, and Private Mortgage Insurance (PMI) for conventional loans.  Both of these types protect the lender in the event of a foreclosure by the borrower and allow the borrower to put less money down at the time of purchase on the home.  Let’s discuss these two types further.  Read the rest of this entry

“Credit Inquires” Not All Created Equal

“Credit Inquires” Not All Created Equal

A “credit inquiry” is a formal request to review a person’s credit report and stays on ones credit report for 120 days after it was pulled.  A person’s credit score is comprised of five different components, with “new credit” being one of the smallest variables.  New credit accounts for only 10% of a person’s overall credit score.  Searching for new credit is relevant to your credit score because when you make a credit inquiry, it’s a specific request to increase your level of indebtedness. The reasoning behind why inquiries are viewed negatively is that the possibility of taking on additional levels of debt increases the probability of a default.  For each new credit inquiry, it increases the probability that you’re taking on larger amounts of debt, which makes it less likely that you’ll make good on your payments to your creditors. Read the rest of this entry