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Message
Trump repeals mortgage premium rate cuts
Posted on 1/21/17 at 7:41 pm
Posted on 1/21/17 at 7:41 pm
I don't know much about the issue other than what I've read up on today. I understand that the rate cuts were for insurances bought for houses with less than 20% down payments to protect against defaults.
From a general population perspective, keeping these rates low is helpful like any low insurance rate would be. And it was estimated to save an average of $500 per family.
My question is, why repeal this? Obviously there's more to it that there has to be some pro's to the move. No one would support the repeal if it just meant jacking the rates up $500 for everybody.
From a general population perspective, keeping these rates low is helpful like any low insurance rate would be. And it was estimated to save an average of $500 per family.
My question is, why repeal this? Obviously there's more to it that there has to be some pro's to the move. No one would support the repeal if it just meant jacking the rates up $500 for everybody.
15
Posted on 1/21/17 at 7:42 pm to BeauxNArreaux
[quote]My question is, why repeal this?[/quot
Because low premiums raise the chances of a tax payer bailout
Because low premiums raise the chances of a tax payer bailout
This post was edited on 1/21/17 at 7:45 pm
Posted on 1/21/17 at 7:43 pm to BeauxNArreaux
Posted on 1/21/17 at 7:44 pm to BeauxNArreaux
Better people bare the cost of their housing and nottax payer
Posted on 1/21/17 at 7:45 pm to HailHailtoMichigan!
quote:
My question is, why repeal this?
Well, for starters, it was NEVER IN EFFECT IN THE FIRST PLACE. It wouldn't start until January 27th.
And my guess is, cost savings for the government? You do realize people's lowered tax rates will more than make up for the ~$40 a month people would have saved with this, right?
Posted on 1/21/17 at 7:45 pm to S1C EM
According to my cousin who is in the industry. There where not funds for the cut and it was a political play by Obama to make trump look bad. He said they knew this was going to happen a couple of weeks ago.
Posted on 1/21/17 at 7:45 pm to BeauxNArreaux
Again? He cut more? 
Posted on 1/21/17 at 7:45 pm to BeauxNArreaux
If you can't afford to pay PMI and you can't afford to save for a downpayment, the government shouldn't subsidize your PMI. You're already high risk enough.
Posted on 1/21/17 at 7:47 pm to BeauxNArreaux
Homes bought with less than 20% down require riskier mortgages. Thus the mortgage insurance! FHA loans require mortgage insurance for all mortgages regardless of down payment amount. My interpretation of this move is that they are trying to cut back on risky loans. I know of people who bought homes with as little as 5% down. Having a heftier mortgage insurance payment will make people think harder before buying a home! Home ownership, like college, is not for everyone. Remember the housing bubble and people buying $500K homes with $30K annual salaries?
Posted on 1/21/17 at 7:49 pm to BeauxNArreaux
quote:
My question is, why repeal this?
Its not a repeal
Its not even in effect. Its one of those last minute exec orders by Obama . . . .
Now, its not
Posted on 1/21/17 at 7:49 pm to FreddieMac
Got it.
All of these answers make sense, and are what I suspected. I just wasn't sure if there was more to it or other effects that I was unaware of.
All of these answers make sense, and are what I suspected. I just wasn't sure if there was more to it or other effects that I was unaware of.
Posted on 1/21/17 at 7:52 pm to BeauxNArreaux
Literally nothing changed.
This was a cut that Obama authorized just before he was leaving office, it hadn't even took effect yet. If it was such a good deal Obama would have done it 8 years ago. He knew that Trump would rescind it and the media would say Trump is costing homeowners' $500.
This was a cut that Obama authorized just before he was leaving office, it hadn't even took effect yet. If it was such a good deal Obama would have done it 8 years ago. He knew that Trump would rescind it and the media would say Trump is costing homeowners' $500.
Posted on 1/21/17 at 7:53 pm to BeauxNArreaux
They stated on fnc this morning that the funds to back the pmi cut looked riskier than the administration was comfortable with and as state just shut down the upcoming reductions to leave it all as is.
Posted on 1/21/17 at 7:54 pm to TigerintheNO
Yes, part of his scorched earth strategy to make Republicans waste time on repealing his crap while the media makes them look bad. Business as usual by BHO!
Posted on 1/21/17 at 7:56 pm to BeauxNArreaux
Well we really should rethink FHA mortgage insurance altogether. It creates moral hazards. It encourages people to buy more house than they could other wise afford.
Posted on 1/21/17 at 7:57 pm to BeauxNArreaux
The president doesn't have the power to "repeal" anything.
Posted on 1/21/17 at 7:58 pm to BeauxNArreaux
It wasn't repealed. It was never enacted! Jesus Christ. People are looking for anything.
FHA loans are already high risk. If anything, the taxpayers should DEMAND a HIGHER PMI.
frick, you can get one of these loans with a 580 credit score. You can't even get an unsecured credit card with that.
FHA loans are already high risk. If anything, the taxpayers should DEMAND a HIGHER PMI.
frick, you can get one of these loans with a 580 credit score. You can't even get an unsecured credit card with that.
Posted on 1/21/17 at 8:00 pm to BeauxNArreaux
If coming up with $500 more bucks is an obstacle to purchase,
you shouldn't be buying that house.
you shouldn't be buying that house.
Posted on 1/21/17 at 8:04 pm to BeauxNArreaux
Wasn't this for first time home buyers?
Posted on 1/21/17 at 8:07 pm to BeauxNArreaux
quote:
My question is, why repeal this
a gift to the housing lobby
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