For many people buying homes in West Knoxville, FHA Mortgages are a common source of financing. Starting in April, West Knoxville home buyers obtaining FHA loans, will see an increase in mortgage insurance premiums. The Federal Housing Administration will increase mortgage annual and up-front mortgage insurance premiums, in order to help repair its emergency help fund.
The FHA has two tiers of mortgage insurance — annual mortgage insurance and up-front mortgage insurance. Up-front mortgage insurance is collected at closing and can be done in a matter of ways, it can be added to the loan amount or added into closings costs. Annual mortgage insurance, in contrast, is added into each monthly loan amount. The FHA uses these mortgage insurance premiums to help pay lenders if a borrower defaults on their loan.
So what exactly does this increase in mortgage insurance premiums mean for West Knoxville home buyers? Read on below to see the break down of what the increase in premiums will mean for West Knoxville home buyers.
Annual Mortgage Insurance Premiums:
Upfront Mortgage Insurance Premiums:
While an increase in anything can be difficult to accept, the FHA is using the increase in premiums to help build up its emergency help fund. With this increase in premium, the FHA will see an increase of $1 billion into its yearly revenue.
So what do you think of this increase in premium?
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
|cookielawinfo-checkbox-analytics||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".|
|cookielawinfo-checkbox-functional||11 months||The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".|
|cookielawinfo-checkbox-necessary||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".|
|cookielawinfo-checkbox-others||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.|
|cookielawinfo-checkbox-performance||11 months||This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".|
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.