Posted on 04/06/2023 12:32:39 PM PDT by EBH
The Federal Housing Administration (FHA) announced Wednesday that it’s increasing the maximum term for a mortgage modification to 40 years or 480 months. The previous term limit was 30 years or 360 months.
The federal agency suggested the move would protect borrowers against default if they had lower monthly payments.
The new regulation aims to help homeowners retain their homes after defaulting by allowing mortgagees to further reduce the borrower's monthly payment, since the outstanding balance would be spread over a longer time frame.
The change will align FHA with modifications available to borrowers with mortgages backed by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corp. (Freddie Mac), which both currently provide a 40-year loan modification option.
The final rule adopts HUD's April 1, 2022, proposed rule without change, the agency said. The new rule will takes effect May 8, 2023.
foolish
Might as well. My property taxes essentially have me on a 60 year adjustable rate mortgage loan, even though my house is “paid” off.
I’m personally allergic to debt, so don’t do mortgages. I would’ve benefited from taking on debt over last 30 years though, for sure. Just can’t stand borrowing, but our system hates savers. Just couldn’t imagine doing a 40 year loan, or a 30 year for that matter.
Exactly. And it also effectively stops the amount of equity a homeowner might build up over 10 and 20 years. This increases the chances of default and foreclosure. A 40 year mortgage is stupid. It’s a con job for homeowners.
And you think forgiving student loans is bad, just wait until there’s home mortgage forgiving.
Ha! Was gonna say the same thing.
This is for loans that are “modified”.
Meaning the borrower is in trouble .
Keeping a foreclosure from happening is a good thing.
And loans have been modified and payments lowered in many ways, so this isn’t anything new.
Yeah - absolutely.
This just helps guarantee people are paying interest for the rest of their lives and getting nothing for it.
Absolutely.
There’s no penalty for paying down quicker. There may be a scenario here and there where you can take out a 40 year mortgage and double the payments, but there are only a few people who would actually do the math and see if it made sense. They aren’t the target market.
Only for Blacks, it will be part of the reparations package.
There is a lot of talk about the “evils of capitalism” these days. What is evil is the amount of debt and the cost of debt servicing these days.
Sadly, that is true. When was the last time any youngster knocked on your door asking to mow or shovel snow? Too many freeloaders in America plus too many handouts.
Why not buy a house you can afford?
Last time I bought a house, I was absolutely astonished at the size of mortgage the banks were willing to approve ... no way I could legitimately afford it. Actually bought for much less, resulting in affordable payments.
If I was 80 yrs old, could I get a 40 yr mortgage pleeze?
True. People who have been around recall when a mere 80K
30 year mortgage paid over the full course was about 240K.
It seems like home prices. Even back in 1972, I recall a home in the 30K rang brought 80K 14-15 years later. Sadly, Yellen is an idiot as her macroeconomic solution is print and print more money. I seriously question any econ type who takes her job with a spendthrift puke like Biden. Look back how America’s economy did in wars through even Vietnam. All the liberal bull and we deserve more has not helped. We had no free rides in the 40’s-early 70’s. Even Black women with kids could not have a man in the Govt. paid housing projects after 12 PM.
40 year mortgage and life expectancy is going down in the US.
Borrow Borrow Borrow!
I sold my soul to the company store.
Yep. Until the cost of housing ‘adjusts’ to the increased demand created.
Reminds me of the opening scene in Saturday Night Fever when Travolta spots a shirt he wants but can’t afford it. He goes in and asks the store manager if they do layaway.
The Store manager looks down and says......”Long as it doesn’t turn into a 20 year mortgage.”
That dude had more financial sense than Biden’s fools.
OH BOY ! You get to carry all the insurances for a whole ‘nother decade ...woo hoo . How nice of them to further allow a never gonna own anything’s to pay and pay and pay...all for YOUR personal benefit huh? Used to be able to build your own home from a basement up and be able to pay cash until certain areas changed by laws that once ground was broken you had a limited time for final completion , meaning at one time you could pour a foundation and put your floor (deck) roll roof it and then pay cash as you built up...no banks/insurances to protect the banks money etc... and yet we TAXPAYERS have essentially bailed out these leeches for their own theft and inept actions. Our politicians and the agencies they created are scum.
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