So if you have had an FHA mortgage before and paid it off, you may remember you needed to do so by the end of the month. The reason was if you paid if off any time before the end, you would pay the interest until the end of the month anyways. Now for my clients who refinanced we always paid attention to this. However, I couldn’t even begin to imagine how many millions of dollars in extra interest have been collected by mortgage servicers.
As of January 21, 2015 FHA will amend this rule and only collect interest through the date the loan is paid off! Great news for anyone who is planning on selling their house in the coming year and has an FHA mortgage. Of course there are always (*) when it comes to HUD and FHA rules, so make sure to pour a glass of wine and read the registry notice posted about this topic.
Chew on that~
Ray Williams
@MtgMaestro
