HUD has announced a proposal to change the cost of both upfront and monthly mortgage insurance for purchases and refinances. This change is based upon loan to value and credit score. Their reasoning is that they want to be able to serve more borrowers and keep the opportunity for home ownership accessible to as many as possible. They have imitated a rate system that has been in place in the private mortgage insurance sector for years. Depending on how good your credit is and how much you put down or how much equity you have, your cost of the mortgage insurance will go down.
Why is this good? As the secondary market continues to shy away from maximum financing i.e. 100% loans someone needs to step up to the plate to keep the ability to purchase lower priced homes feasible for most working class people. When they want and can purchase the starter home or the lower priced home, then the person selling that home has the chance to move up, which keeps the process moving right up the price scale.
You can view the proposed changes and get information on how you to can comment to HUD about this change at this address; http://hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=FR07&s1=FR-5171-N-01$[NO]&SECT5=FR07&SECT1=TXTHLB&l=50&u=../cgi/newsdoc_run.cgi&p=1&r=1&f=G
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1 comment:
thanks for the heads up!
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