Posted on 01/23/2017 7:22:55 AM PST by Dacula
Pay at least 20% down and you won’t have to worry about mortgage insurance.
Dodd-Frank and CRA.
Where have you been? In a cave?
and no first-time home owner will be able to get a loan without 20% or more down.
Which is exactly the way it was when I bought my first house and it needs to go back to 20%.
Yes. How many major financial crises does it take for Americans to learn that tilting the scales towards people unqualified to own a home adds big risks to the economy and tends to trigger recessions?
Trump is going to put the nation a strong financial footing. This and other smart business is why the stock market is climbing.
That makes sense
In comments at the site, $500/year is on a $300,000 home. If you can afford that home price the $500 is nothing to you.
In comments at the site, $500/year is on a $300,000 home. If you can afford that home price the $500 is nothing to you.
I’m guessing this would only apply to FHA loans in the 95% or higher LTV. Meaning about a $40/mo increase in mortgage payments using this program.
Yeah, Trump hates the middle class will be the narrative.
Weakening of the PMI was also done during the Clinton admin by Cuomo. This along with deregulation of Fannie & Freddie was what contributed largely to the Housing bubble that burst later in Bush’s admin.
You’re absolutely 100% correct on the landmine theory also...
PMI, mortgage insurance, applies to all mortgages financed with less than a 20% down payment, to my understanding.
Reducing the PMI payment, like Obama did, makes the risk even higher. Trump is just acknowledging that there is a good reason why some loans have PMI added on to the payment. It is to reduce the risk to the lender. If the premium is cut, the risk goes up.
This is a good thing. If people want to borrow $300,000 to buy a house and don't have 20% of the sales price for a down payment, they need the PMI to even get the loan. Reducing the premium amount may help the borrower, but it also puts the lender at a higher risk of that borrower defaulting.
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