Mortgage Monday: The FHA Announces Drastic Change in Mortgage Insurance

By June 28, 2018 Uncategorized

mortgage insuranceMost people who have bought or are thinking of buying a new home have heard of the FHA or Federal Housing Administration.  The FHA is an arm of the Department of Housing and Urban Development (HUD) and the primary focus of the FHA is to encourage homeownership in the United States. To do this, the FHA insures mortgages against borrower default. By insuring mortgages, the FHA makes homeownership possible for a broader range of buyers.

For first time home buyers looking to secure a mortgage, an FHA loan means PMI or mortgage insurance.  It’s important to understand, mortgage insurance is a completely separate product from home insurance.

Last Friday the FHA announced that effective April 1st of 2013 there would drastic changes to the mortgage insurance rates.

Thankfully we have Jim Cardinal, Branch Manager for Syracuse Securities {visit his website to learn more} and Alexis Meeks of Karp, Ackerman, Skabowski & Hogan CPAs {Connect with Alexis on LinkedIn} to explain what is happening, how it will impact the home buying process and what actions to take moving forward.

Watch the video:

(If you cannot view the video click here)

These types of changes, especially a change so drastic as mortgage insurance being required for the entire life of your FHA loan can have a serious impact of your opportunity to buy a home.

Mortgage Mondays is going to be a regular feature here on our blog so I hope you will continue to come back and learn about what is happening the world of mortgages.

Special thanks to Jim Cardinal and Alexis Meeks for allowing us to feature their program.

You can reach them by phone at:

  • Jim Cardinal | (518) 281-0077
  • Alexis Meeks | (518) 828-7618

We can help with homeowners insurance

If you are a first time home buyer or if you currently own a home we would love the opportunity to help you find the proper coverage at the most competitive for your homeowners insurance.  We are dedicated to helping you make the best decisions regarding your insurance and providing our community with resources like Mortgage Mondays is just part of that dedication.

If you would like to receive a quote give us a call at (518) 456-6688 or click here to begin the process by email.

Thank you,

Ryan Hanley, CIC