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Trump day 1 suspends FHA mortgage insurance rate cut for Homebuyers

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posted on Jan, 21 2017 @ 03:11 PM
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So it looks like trump has rolled back some of the recent scheduled changes to the FHA home buyer program.


If the planned reductions went into effect, borrowers who put down less than 5% on a $600,000, 30-year mortgage would have saved $1,500 a year. The Obama administration estimated that new FHA borrowers across the nation would have saved an average of $500 a year.

“That is real money,” Southern California mortgage broker Jeff Lazerson said.

Lazerson, president of Mortgage Grader in Laguna Niguel, said he had several clients who were putting off deals so they could get a cheaper insurance rate after Jan. 27.


Though the percentage is small it can add up depending on how large the loan is in the home buyers market. This affects the first time buyers and middle class groups the most. I understand the fears some have regarding the program becoming insolvent if the market tanks though.

At the same time having affordable programs for first time buyers is key especially now that the younger generation is no longer buying homes like generations past due to increased prices, stagnant wages etc. What say you ATS?

www.latimes.com...

theintercept.com...




posted on Jan, 21 2017 @ 03:18 PM
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If california think its a good idea why does thete state government not initiate it?

Why cant it be left to states?



posted on Jan, 21 2017 @ 03:19 PM
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An average savings of $1.37 a day,you`re right that does seem small, hardly worth mentioning actually.



posted on Jan, 21 2017 @ 03:28 PM
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originally posted by: Tardacus
An average savings of $1.37 a day,you`re right that does seem small, hardly worth mentioning actually.


It depends on the loan and market, for some its an extra $1000+ a year which is money you would have instead. That can be the difference for some families. Dont discount small numbers over time, that extra $1000 over a 30 year loan adds up.



posted on Jan, 21 2017 @ 03:30 PM
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Well, if there is one thing Trump knows inside out it is real estate.

5% deposit mortgages are a high risk (for default) And the last thing the US economy needs is more financial bailouts.

Speaking as someone who only purchased their first property in Aug 2016 at the age of 43, here is some advice;

Don't give up.
Shop smart - consider moving to somewhere more affordable if it is at all possible for your employment / family situation.

Case example; I had literally given up on trying to buy property because the prices kept escalating and saving the deposit needed was nigh on impossible for capital city property. The house I was renting increased in value from $300,000 to $450,000 in the 6 years I rented it for instance.

So, I took the biggest risk I have ever taken in my life and took a job opportunity out in a rural town. With the savings I had and a bit of wizardry from a mortgage broker, I was able to purchase a 4 bedroom home with an acre of land in a tiny township.
edit on 21-1-2017 by markosity1973 because: (no reason given)



posted on Jan, 21 2017 @ 03:39 PM
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It's a government subsidy. It's welfare. Why can't you go get a loan like everyone else? Why do you need the government to "help" you? Is "the government shall help you buy a house" in the Constitution? I have purchased several houses in my lifetime. None of them were with the help of the FHA. And it's not as if I'm well off. I bought my first house when the interest rate was 10-1/8th and my salary was $930 a month. Today's mortgage rates are what? 3.2%? And you NEED the FHA? I don't think so. today's mortgage rates are at what they were in the 1950's, the cheapest they have been in fifty years. This is the kind of thing that must be done to reduce the size of government. It's a good thing. And if you are in the position of NEEDING this subsidy, you're doing something wrong.



posted on Jan, 21 2017 @ 03:42 PM
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originally posted by: Tardacus
An average savings of $1.37 a day,you`re right that does seem small, hardly worth mentioning actually.



Think like a penny pincher. Its a start and there are many of these 1.37cent dips all through our yearly incomes. We need to go after them.



posted on Jan, 21 2017 @ 03:42 PM
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Well who was that really helping? I nor anyone I know who needs the help isn't buying much over a 300k house. So if we extrapolate from the example I would save about 20$ a month. I say the money is better spent elsewhere.



posted on Jan, 21 2017 @ 03:45 PM
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a reply to: crazyewok

Federal Housing Authority.



posted on Jan, 21 2017 @ 03:51 PM
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originally posted by: schuyler
It's a government subsidy. It's welfare. Why can't you go get a loan like everyone else? Why do you need the government to "help" you? Is "the government shall help you buy a house" in the Constitution? I have purchased several houses in my lifetime. None of them were with the help of the FHA. And it's not as if I'm well off. I bought my first house when the interest rate was 10-1/8th and my salary was $930 a month. Today's mortgage rates are what? 3.2%? And you NEED the FHA? I don't think so. today's mortgage rates are at what they were in the 1950's, the cheapest they have been in fifty years. This is the kind of thing that must be done to reduce the size of government. It's a good thing. And if you are in the position of NEEDING this subsidy, you're doing something wrong.



You bought a house 30 years ago?



posted on Jan, 21 2017 @ 03:55 PM
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a reply to: unfor54k3n

well, they gain more than $1.37 a day when obamacare is gone and their insurance premiums drop back down to where they were before obamacare was instituted.

with all the extra money they have had to spend on insurance premiums under obamacare for the past 6 years they could have paid all 30 years of that mortgage insurance and still had a lot left over.



posted on Jan, 21 2017 @ 03:56 PM
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originally posted by: Tardacus
An average savings of $1.37 a day,you`re right that does seem small, hardly worth mentioning actually.


But $500 a year! When you say it that way, $500 is more than $1.37! This could have made the difference between affording a $600,000 house and not affording a $600,000 house!



posted on Jan, 21 2017 @ 03:58 PM
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The op is only half the story, There is a reason Trump did this, it's quite a good one, And makes sense.

Read the full story Here



posted on Jan, 21 2017 @ 03:59 PM
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originally posted by: sputniksteve

originally posted by: Tardacus
An average savings of $1.37 a day,you`re right that does seem small, hardly worth mentioning actually.


But $500 a year! When you say it that way, $500 is more than $1.37! This could have made the difference between affording a $600,000 house and not affording a $600,000 house!


For some its closer to 1000 a year. which is make or break for tons of single parent families. But lets not kid ourselves. If dictator Obama did anything that would cost the avg american 1000 extra a year, we'd see deport Obama threads in no time..

edit on 21-1-2017 by bknapple32 because: (no reason given)



posted on Jan, 21 2017 @ 04:01 PM
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a reply to: bknapple32

I disagree, $80 a month is not make or break for very many or any people purchasing a home. That's silly, and my comment has nothing to do with R or D.

Are you saying Obama hasn't done anything that means the difference of $1000 or more a year for average americans during his 8 years? Are you sure you want to stick with that? Plenty of time to edit and leave that part out.
edit on 1/21/2017 by sputniksteve because: (no reason given)



posted on Jan, 21 2017 @ 04:03 PM
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FHA is mortgage insurance. The cut would have significantly lowered the monthly cost for a lot of borrowers.

However, FHA is primarily insurancing some of the highest risk mortgages. The program needs to stay solvent and have funds in reserves in case of another wide spread housing crash. The premiums are where this money comes from.

I see both sides. I also work in mortgage finanve so know this issue well. Id benefit immensely from the cut but i dont think trump is right in this one.



posted on Jan, 21 2017 @ 04:05 PM
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a reply to: bknapple32

If they can`t afford a $600,000 home I guess they`ll have to slum it and buy a half million dollar home, it could be worse they could be homeless and besides they`ll be saving money when obamacare is repealed.



posted on Jan, 21 2017 @ 04:08 PM
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originally posted by: sputniksteve

originally posted by: Tardacus
An average savings of $1.37 a day,you`re right that does seem small, hardly worth mentioning actually.


But $500 a year! When you say it that way, $500 is more than $1.37! This could have made the difference between affording a $600,000 house and not affording a $600,000 house!


If you are trying to buy a $600,000 home with a handout as your first home, you are doing it wrong and putting yourself at big risk of financial failure.

I paid $125,000 for mine. Sure it's no Beverly hills mansion, but it's comfortable and most imprtantly, it's mine. My repayments are slightly less than what I was paying in rent. And they are only that high because my mortgage broker put part of it into a 7 year personal loan.
edit on 21-1-2017 by markosity1973 because: (no reason given)



posted on Jan, 21 2017 @ 04:09 PM
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originally posted by: sputniksteve
a reply to: bknapple32

I disagree, $80 a month is not make or break for very many or any people purchasing a home. That's silly, and my comment has nothing to do with R or D.

Are you saying Obama hasn't done anything that means the difference of $1000 or more a year for average americans during his 8 years? Are you sure you want to stick with that? Plenty of time to edit and leave that part out.


I hope you`re not referring to obamacare because obamacare has been awesome americans got to keep their existing insurance and doctors and the premiums have just kept going down every year.
With the very affordable $6,000+ deductables americans have never had it so good.

in comparison to obamacare this $1.37 a day mortgage insurance increase is highway robbery


edit on 21-1-2017 by Tardacus because: (no reason given)

edit on 21-1-2017 by Tardacus because: (no reason given)



posted on Jan, 21 2017 @ 04:13 PM
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originally posted by: Edumakated
FHA is mortgage insurance. The cut would have significantly lowered the monthly cost for a lot of borrowers.

However, FHA is primarily insurancing some of the highest risk mortgages. The program needs to stay solvent and have funds in reserves in case of another wide spread housing crash. The premiums are where this money comes from.

I see both sides. I also work in mortgage finanve so know this issue well. Id benefit immensely from the cut but i dont think trump is right in this one.


I think it's a double edged sword, like I mentioned I understand the fears of it becoming insolvent in another housing crash but at the same time they are in a surplus and thus in a postion to help out the people looking to buy. A lot of people here dont realise that in many parts of the country 600k for a home is still cheaper than the typical 900k homes found in many counties in California for example. If you cant leave because the work is there but you cant afford to buy and get trapped renting you would think helping people save money would be a good thing.

Home ownership is a corner stone of building wealth and boosting the economy. Thanks for seeing it from both sides of the aisle. I know a lot of posters see Trump as the man who can do no wrong around ATS nowadays. They do mention that if the policy analyses comes back they might still give it a greenlight.
edit on 21-1-2017 by unfor54k3n because: (no reason given)



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