Since the Department of Housing and Urban Development announced significant changes reverse mortgages on August 29, the industry has been preparing itself. Appointments for mandatory financial counseling sessions filled up quickly and lenders went into overdrive to help borrowers obtain an FHA case number.
With the October 2 deadline looming on the other end of the weekend, experts are citing today as the last opportunity to get in under the wire. Although some counseling agencies are offering Saturday appointments they may be hard to come by and little chance on receiving an FHA case number in time.
The changes include an increase in the minimum FHA upfront mortgage insurance premium from half a percent to two percent of a home's value as well as a 20 percent reduction in available funds based on today's FHA floor rate.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent while 15-year rates are near 3.125 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.