FEDERAL Housing Administration mortgages, the government-insured loans that have increased in popularity in recent years, will be getting slightly more costly this spring. 

FHA Still Good Loans

The F.H.A. announced this month that it was raising the annual mortgage insurance premium for borrowers by a quarter of a percentage point — to 1.1 or 1.15 percent of the loan amount for 30-year fixed-rate loans, and 0.25 or 0.50 for 15-year or shorter-term loans.

This will tend to make these loans less popular, but is still the best alternative for many borrowers for the near future.  Of course the big question on everyone’s mind is :  What will become of Fannie Mae and Freddie Mac?   With the President indicating sweeping changes of these two goliaths, it is all but certain that they will play less of a role in the coming years.  How much of a role has yet to be determined.

About Robbie Hopcraft

This post was written by Robbie Hopcraft, a Realtor and certified short sale specialist in Key West, FL. “I provide helpful information to homeowners that are in a ‘distressed property’ situation of any type. Most homeowners don’t know who to turn to..Information is the key to a solution. I also specialize in bank owned properties for purchase.”

Contact Robbie at (305) 304-1609 or by email.