“The Federal Housing Administration (FHA) today announced that borrowers who prepay their FHA-insured mortgages will not have to make interest payments beyond the date their mortgage is paid in full.

 

FHA’s rule, Handling Prepayments: Eliminating Post-Payment Interest Charges, applies for FHA-insured mortgages closed on or after January 21, 2015.   This rule  explicitly prohibits lenders from charging borrowers post settlement interest, which is broadly defined as a “prepayment penalty” by the Consumer Financial Protection Bureau (CFPB), for all FHA Single Family mortgage products and programs. ”

My FHA loan was originated in June 2014. It will be paid off September 2015 as I am refinancing into a conventional loan. Will I be responsible for the full month of September interest regardless of close date?
I am confused on the wordage “closed on or after January 2015” is that referring to my original FHA loan has to have been originated after Jan 2015 or that it has to be paid off after Jan 2015?

 

SCOTTSDALE

6263 N Scottsdale Rd #190
Scottsdale, AZ 85250
Phone: (480) 385-6500
Fax: (480) 385-6800

ARROWHEAD/PEORIA
16155 N 83rd Ave #105
Peoria, AZ 85382
Phone:
(623) 385-1000
Fax: (623) 385-1021

MARICOPA
21300 N John Wayne Pkwy #102
Maricopa, AZ 85139
Phone: (520) 518-5222
Fax: (480) 385-6906


GOODYEAR
1616 N Litchfield Rd #110
Goodyear, AZ 85395
Phone: (623) 385-1050
Fax: (623) 385-1039


CHANDLER/OCOTILLO
2577 W Queen Creek Rd #105
Chandler, AZ 85248
Phone: (480) 385-6400
Fax: (480) 385-6804


GILBERT
1952 E Pecos Rd #103
Gilbert, AZ 85295
Phone: (480) 385-6524
Fax: (480) 385-6432

BASELINE
1757 E Baseline Rd #101
Gilbert, AZ 85233
Phone: (480) 830-0883
Fax: (480) 385-6854


PINNACLE PEAK
23200 N Pima Rd #101
Scottsdale, AZ 85255
Phone: (480) 385-6530
Fax: (480) 385-6933

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