By  Elimination Of FHA Prepayment Penalty

Elimination Of FHA Prepayment Penalty

Dated: 09/03/2014

Views: 430



August 29, 2014
On August 26, 2014, the Federal Housing Administration (FHA) issued its final rule to eliminate post-payment interest charges on FHA-insured single family mortgages.  NAR has urged FHA and Ginnie Mae to remove this prepayment penalty for years as the policy placed an unreasonable burden on consumers who already face high housing and closing costs.  Conventional loans, as well as loans from the Veterans Administration’s Loan Guaranty Program and the U.S. Department of Agriculture’s Rural Housing Service loan program, do not have post-payment interest charges.  The policy change will prohibit mortgagees from charging borrowers interest on their home mortgages after a principal balance pay-off.  The final rule will go into effect on January 21, 2015.Final RuleNAR Response to Proposed Rule
Blog author image

Donna Podesta

I am an experienced Realtor working in the Greater Hudson Valley Region which includes both Rockland and Orange County. My goal is to make my client's real estate experience a happy one. Because succe....

Want to Advertise on this Site?

Latest Blog Posts

Plant Now For A Spectacular Spring Perennial Garden In Nyack

As the days grow shorter, it’s time for fall planting. This is a great time to reseed or plant a new lawn as grass grows best on cool nights with warm days. It is also the time to get your tulip,

Read More

Build Your Dream Home In Upper Nyack

Great parcel of land for privacy and nature lovers to build your dream home in Upper Nyack. Very close to Hook Mountain Park with a trail along Hudson River, schools, shopping, only a few

Read More

Make A Difference In Pearl River

This Saturday, at the Pfizer campus, bring your donations for the pantry at People to People!;

Read More

Three Ways To Win In A Bidding War

With so few houses for sale today and low mortgage rates driving buyer activity, bidding wars are becoming more common. Multiple-offer scenarios are heating up, so it’s important to get

Read More