Trump Sticks it to Struggling Homeowners.

[_Doctor CamNC4Me]

Wait. Does this mean current homeowners are going to pay more, or potential homeowners are going to pay more? In other words, are real homeowners who actually own a home going to pay more? Because. You know. You're not a homeowner if you haven't closed on a home.

- Doc

[_Markk]

While I still have some reading to do, what I have read so far, and I believe I got this correct... that HUD is ripping of folks that get a HUD loan in that they have to pay MIPs for the entire life of the loan, where as with a privately funded loan the MIPs can stop after enough equity is built up in the home, or something like that. Bottom line if one pays 30K in MIPs in a HUD loan, it could be around 15K in a privately funded loan.

[_Markk]

Wait. Does this mean current homeowners are going to pay more, or potential homeowners are going to pay more? In other words, are real homeowners who actually own a home going to pay more? Because. You know. You're not a homeowner if you haven't closed on a home.

- Doc

I don't think so, I believe it is a fixed rate built into the loan, but I could be wrong. You would probably have to refinance to get the lower rate? I started reading this and following links, but a lot to read.

https://en.wikipedia.org/wiki/Mortgage_insurance

[_Kevin Graham]

While I still have some reading to do, what I have read so far, and I believe I got this correct... that HUD is ripping of folks that get a HUD loan in that they have to pay MIPs for the entire life of the loan, where as with a privately funded loan the MIPs can stop after enough equity is built up in the home, or something like that. Bottom line if one pays 30K in MIPs in a HUD loan, it could be around 15K in a privately funded loan.

If FHA loans were such a rip off people wouldn't be anxiously trying to qualify for them. You're focusing only on the one negative aspect of it, the required PMI. But PMI is required in conventional loans as well unless your down payment is 20% of the home value. What typically happens is that first time buyers who qualify get an FHA loan and then over time when their credit improves, they'll refinance with a conventional loan and depending on how much equity they have, they can reduce or drop their PMI completely. But the advantage of low down payment is generally the biggest selling point for FHA, but also the sellers are allowed to pay up to 6% of the loan in closing costs, which is twice as much as conventional loans. That's a huge benefit to FHA buyers. Another advantage is that FHA loans are assumable, which is a huge selling point when they decide to sell.

[_Kevin Graham]

Wait. Does this mean current homeowners are going to pay more, or potential homeowners are going to pay more? In other words, are real homeowners who actually own a home going to pay more? Because. You know. You're not a homeowner if you haven't closed on a home.

- Doc

Technically you're not a homeowner if you're financing it. But we call them homeowners anyway.

[_Doctor CamNC4Me]

Wait. Does this mean current homeowners are going to pay more, or potential homeowners are going to pay more? In other words, are real homeowners who actually own a home going to pay more? Because. You know. You're not a homeowner if you haven't closed on a home.

- Doc

Technically you're not a homeowner if you're financing it. But we call them homeowners anyway.

Hrm... I'm a homefinancer. I'm a propertyfinancer. Either works for me. I like that.

- Doc

[_Jersey Girl]

I swear, if some of you guys had to give birth to a baby, you'd jump out a window at the first twinge. It's not even 24 hours past. Let's give this time and see what unfolds.

Yes, giving birth and throwing away the baby is a perfect analogy to being critical over electing a known con artist, obsessive liar, sexual predator and semi-literate moron.

Yeah, Kev? Let's cut through the crap, okay?

What are you going to do about it besides see what unfolds?

[_Maxine Waters]

I wish I had just kept paying rent. I'd be better off financially if I had. Out of around $2k in monthly mortgage costs only $300 goes to principal for me. The rest is interest, taxes, PMI, homeowners insurance, flood insurance, HOA fees etc. That doesn't even count all the repair and upkeep costs. I could have saved myself a lot of labor mulching, mowing, gardening, painting, raking leaves, etc.

[_The CCC]

I'm better off financially than when I rented. My rent was $900/month with a expected raise to $1000/month. My mortgage was $1033/per month. So that is a wash. I was reading the other day that the apartment is now going for $2500/month. My net worth however has increased substantially, and with my mortgage paid off. My house is mine.

[Guest]

I'm better off financially than when I rented. My rent was $900/month with a expected raise to $1000/month. My mortgage was $1033/per month. So that is a wash. I was reading the other day that the apartment is now going for $2500/month. My net worth however has increased substantially, and with my mortgage paid off. My house is mine.

It depends where you live. I live in a particularly bad area for flood and homeowner's insurance so in a way I deserve that result for choosing to live here.

But the idea that you own your own home is a myth. Kevin was right to point out that you don't own the home unless you have paid it off. I'd contend that you only own the home inasmuch as you can pay the property taxes. You're ultimately just renting from the government anyway.

You're also more free to look for a better job and move if you rent. If you have to sell the house, you'll immediately lose 6% of the home's value to the relators if they can sell it for you.