You wanted lower mortgage insurance rates for your FHA-based mortgage loan? Baaaa haaaa haaa. Haven’t you heard? America is great again now. So that means first time home buyers who were expecting lower rates under Obama get to pay more for insurance under Trump. Isn’t that great?
If you are putting less than 20% down on your home purchase, you will have to pay mortgage insurance. The Department of Housing and Urban Development, headed by Dr. Ben Carson, just reversed an Obama policy to trim insurance premiums for buyers. The Federal Housing Authority [FHA] does not issue loans, but instead insures mortgages and collects fees from borrowers to reimburse lenders in case of default.
Trumps nominee Dr. Carson said during his hearing that he would work with the “FHA administrator and other financial experts to really examine that policy.” Which policy you ask? The recent FHA rate cut. Sounds like higher rates for home buyers to me.
The bottom line is new home buyers will pay more for mortgages. Dr. Carson has not been confirmed yet, but his nomination looks like a fait accompli. So if you are a future buyer, call your senator and put in your two cents now. It seems "Making America Great Again" means you pay more for mortgages. Who knew? AskHollingsworth
Photo Source: Gage Skidmore