FHA mortgage insurance is charged to borrowers to cover the cost of losses on defaulted mortgages. The annual premium paid by a borrower on an FHA loan has become very costly, amounting to thousands of dollars a year for many borrowers. Effective April 18, 2011, the the annual FHA mortgage premium was increased as the […]
Archives for June 2011
FHA Mortgage Insurance Very Costly For Borrowers
June 17, 2011 Filed Under: FHA Mortgage Basics, FHA Mortgage Insurance
Different Types of FHA Adjustable Rate Mortgages Offer Choices For Borrowers
June 16, 2011 Filed Under: Benefits of FHA Mortgage, FHA Adjustable Rate Mortgages
An FHA adjustable rate mortgage (ARM) can offer borrowers the benefit of a lower rate compared to a standard fixed rate mortgage. The lower rates on FHA ARM mortgages, however, do present the borrower with the risk that the interest rate may rise when the ARM mortgage rate adjusts. There are circumstances under which the […]
Factors That Affect Rate Changes On FHA Adjustable Rate Mortgages
June 16, 2011 Filed Under: FHA Adjustable Rate Mortgages, FHA Mortgage Basics
The FHA offers a variety of different adjustable rate mortgage (ARM) programs (see Different Types of FHA Adjustable Rate Mortgages). Each borrower has unique needs to consider when deciding whether to take an FHA ARM or an FHA fixed rate mortgage product. Both the fixed and adjustable rate mortgages have benefits and risks and a […]
FHA Adjustable Rate Mortgages (ARM) Offer Benefits and Risks
June 16, 2011 Filed Under: FHA Adjustable Rate Mortgages, FHA Mortgage Basics
The FHA offers a variety of adjustable rate mortgages. An adjustable rate mortgage is known as an ARM and the rate will vary over the life of the loan. A fixed rate FHA mortgage has a rate that remains unchanged for the life of the loan. The rate on an ARM is lower than a […]
FHA Energy Efficient Mortgage (EEM) Can Reduce Home Energy Costs
June 10, 2011 Filed Under: Benefits of FHA Mortgage, FHA 203(k) Loan, FHA Energy Efficient Mortgage
The largest monthly expenditure for most homeowners, after the mortgage payment, is for heating and cooling. Making a home more energy efficient can result in substantial monthly savings. The FHA has a program that allows homeowners to borrow the funds necessary to upgrade a home’s energy efficiency. Besides lowering utility bills, an energy efficient home […]