The Federal Housing Administration again moved to provide homeowners with options by announcing that it will begin lowering mortgage insurance premiums.
Online PR News – 28-January-2015 – Los Angeles, California – The Federal Housing Administration again moved to provide homeowners with options by announcing that it will begin lowering mortgage insurance premiums. In doing so, the FHA believes that this initiative will help homeowners save nearly $1000 per year.
In addition to providing existing homeowners with relief, the move should also help to drive new, first-time buyers into the real estate market. By strengthening the industry as a whole, continued market stabilization is expected. With “first-time buyers” hitting historic lows in recent years, these efforts are designed to ensure that qualified buyers are able to make home purchases, while ensuring that existing owners are not losing equity in properties already owned.
U.S. HARP Refinancing Still Available
The lack of equity in existing mortgages has slowed the housing market’s recovery, leading to resolved efforts in increasing homeowner awareness of the Home Affordable Refinance Program (HARP). This program was established to assist homeowners who are current in payments but unable to qualify for refinancing due to being “underwater” in their existing mortgages.
The New York Times reports that nearly 700,000 homeowners have yet to take advantage of this program. It is estimated that borrowers can reduce monthly payments by $200 per month, helping to strengthen the economy and limit the effects of falling real estate prices.
Reverse mortgages on the Rise
The use of Reverse Mortgages has become increasingly common for seniors across the United States. By giving retirees the ability to cash-in on home equity by RECEIVING payment from a buyer, they can live in their home while slowly selling it. However, because the homeowner cannot be “underwater” in the property, they must first leverage the HARP program to refinance at a better rate. Once this is completed, reverse mortgages become a viable option.
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