Wednesday, May 16, 2012

Dear Abie:  

Question:

 My uncle refinanced from an FHA loan to a conventional mortgage. The FHA loan was two years old, and he paid a lot for the up-front mortgage insurance premium. Can he get back any of that insurance money?

Answer:

The FHA was established in the 1930s and designed to be a “mutual” insurance plan where borrowers essentially were the program shareholders and refunds would be available when claims were low. That’s no longer the case. As HUD explained, FHA refunds have been eliminated for loans made after Dec. 8, 2004 “except when the borrow refinances to another mortgage to be insured by FHA.” Speak with The Covenant Team for details.  

 Dear Ida:  

Question:

Why do loans Consumers Co-Sign for Appear on their Credit Report?

 

Answer:

A co-signor on a loan is responsible for the debt if the primary account holder does not pay on the account as agreed or defaults on the loan. The delinquencies may appear on the co-signer’s credit report and the co-signer may be responsible for the repayment of the debt.

 

 

 

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