Walking you all the way home.
Search Homes My Blog Testimonials Home Contact Us

My New Blog

Elimination of FHA "Pre Payment" Penalty
September 15th, 2014 4:23 PM
On August 26, 2014, the Federal Housing Administration (FHA) issued its final rule to eliminate post-payment interest charges on FHA-insured single family mortgages.  NAR has urged FHA and Ginnie Mae to remove this prepayment penalty for years as the policy placed an unreasonable burden on consumers who already face high housing and closing costs.  Conventional loans, as well as loans from the Veterans Administration’s Loan Guaranty Program and the U.S. Department of Agriculture’s Rural Housing Service loan program, do not have post-payment interest charges.  The policy change will prohibit mortgagees from charging borrowers interest on their home mortgages after a principal balance pay-off.  The final rule will go into effect on January 21, 2015.



Posted in:General
Posted by Teresa Molina on September 15th, 2014 4:23 PMPost a Comment

Subscribe to this blog

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog: