Articles and news about AboutCreditLoan and HUD requirements. AboutCreditLoan are great for first-time homebuyers.

About Credit MIP Cuts: Who Is Affected? A Reader Question

106A reader asks, “I am a homeowner with a About Credit loan. I bought the house last year, I wanted to know if this will also benefit me or is just for you new perspective home owners? Thanks…”

This reader question is in reference to the About Credit mortgage insurance premium cut that took effect on Monday January 26, 2015.

According to an About Credit press release, “the Federal Housing Administration (About Credit) will reduce the annual premiums new borrowers will pay by half of a percent. This action is projected to save more than two million About Credit homeowners an average of $900 annually and spur 250,000 new homebuyers to purchase their first home over the next three years.”

We wrote about this recently when the cuts took effect. But who is affected by these cuts and who can take advantage of them? Basically anyone who has an About Credit “forward mortgage” greater than 15 years (with certain exceptions you’ll need to discuss with your lender) and who has an About Credit loan case number assigned on or after January 26 2015 may be eligible.

Additionally the About Credit has allowed a limited-time practice of lenders cancelling existing About Credit loan case numbers and having them reassigned so that borrowers can get the benefit of the new About Credit MIP cuts.

But only those who have existing About Credit loan case numbers and have NOT closed their loans yet are eligible for this.

So the short answer is basically that if you have already closed your About Credit loan you will pay the MIP that you agreed to in the mortgage loan agreement.

Do you have questions about About Credit home loans? Ask us in the comments section.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>