FHA TO ELIMINATE “POST PAYMENT” INTEREST CHARGES

FHA TO ELIMINATE “POST PAYMENT” INTEREST CHARGES

“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?

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Scottsdale, AZ 85250

Phone: (480) 385-6500
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Peoria, AZ 85382

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Maricopa, AZ 85139

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Goodyear, AZ 85395

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Chandler, AZ 85248

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