Closing delays costly when buying new home

Q: I have signed a contract to purchase a newly built home. The homes have been on the market for 420 days. My lender is having issues meeting the closing date agreed upon, and now the builder is charging me $300 per day for each day closing is delayed. Do I have any legal recourse …

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Three scams to avoid when locking your loan

Q: I’m trying to get a better understanding of private mortgage insurance (PMI). I understand the fundamentals and that it usually equals 1/2 percent-1 percent of the mortgage, but what I’m not sure about is how it is paid. Is the PMI paid each year until you reach the 20 percent mortgage-to-value ratio? Can you …

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FHA mortgages are poised to get more expensive

The Federal Housing Administration (FHA) plans to impose significant restrictions on the amount of money that sellers can contribute at closing in the near future. The FHA also will be raising its mortgage insurance premiums during the coming weeks, increasing charges for new purchases across the board. Making sense of the story: One reason for …

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