Increased FHA premiums
Reverse Mortgage Borrowers May See Increased Insurance Premiums
It’s a consequence of the payroll tax cut extension: increased FHA premiums. Reverse mortgage borrowers may see increases of ongoing insurance premiums. Should borrowers bear the burden for a tax cut for working Americans?
Shannon Hicks - Shannon Hicks is VP of Product Development at Reverse Fortunes, Inc. He draws from his experience as a reverse mortgage originator and prior work in the financial services industry. He has spoke nationally at NRMLA events and is host of Reverse Fortunes Weekly, the nation’s only weekly podcast for reverse mortgage professionals. For more information, call 1.800-805-9328 x 4.
MIP charges already keep some people from buying a home or doing a reverse mortgage. Assuming that the average person changes their home every 7 years, 14% of homeowners are carrying the tax load for the entire workforce.
I am a little lost on your comment. There were other offsets as well. FHA insurance was just one.