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Repair Escrows for VH Mortgage Loan, FHA Mortgage Loan
Appraiser Says
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Repairs Needed?
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Mortgage Appraisers for both VA Home Loan Mortgages and FHA Home Loan Mortgages will be sticklers on safety, habitability, and structural soundness. In the past they worried about things like porch railings or uneven cement sidewalks that caused trip hazards. These don’t get flagged much any more.
However, failing roofs or peeling paint are two of the most common issues flagged by appraisers in a VA Mortgage or FHA Mortgage Loan Appraisal.
Why to Buy NOW before FHA Loans Undergo BIG CHANGE June 1st
If you want to buy a house this summer: Buy Now!
It would be in your best interest to buy before June 1, 2013. This article explains why.
Effective on new FHA Mortgage Loans registered after June 1, the Mortgage Insurance Premium (MIP) paid monthly will be for the life of the loan instead of as at present where it is only paid until loan to value is reduced down to 78%.
For expample, if you buy a $100,000 house, and over the years pay the balance down to $78,000 then mortgage insurance drops off, reducing your house payment by a significant amount.
This is a huge change that will cost borrowers as much as tens of thousands of extra dollars over the life of the loan.
Until June 1, New FHA Loans will have Mortgage Insurance that drops off when the loan is paid down to 78% of the house value. This Mortgage Insurance premium could run $100 a month to $300.00 a month or more depending on the price of the house and the amount of the mortgage.
FHA Loans have traditionally started out with a below market interest rate but higher effective payment rate per month than Conventional home loans due to MIP. But after the initial Mortgage Insurance is no longer owed the exceptionally low rate remains in effect for the remainder of the mortgage, saving borrowers tens of thousands of dollars.
For example, at today’s rates, a 30 Year Fixed Rate FHA Loan carries an interest rate as low as 3.25%. But MIP adds 1.35% per month, making the effective rate 3.25% + 1.35% or 4.60%. This compares to 30 Year Fixed Rate Conventional Loans at 3.875%.
As you can see, at present, the FHA Loan is more expensive at first, but costs less later in the loan. However, new FHA Loans registered after June 1st will keep the MIP for the life of the loan. Any potential home buyers who want to move this summer should make their offer and start their FHA loan several days BEFORE June 1st!
For more information, and fast free easy online mortgage application, see http://www.fhaloanmortgageohio.com, http://www.fhaloanmortgagemichigan.com, http://www.fhaloanmortgageflorida.com, http://www.midmtg.com or call Lonn Dugan at 419-764-9649
FHA Mortgage Home Loan Toledo 