Reducing FHA Interest Charges upon Sale or Payoff

Our Consigliere, Christopher Moles, has done some research on a senate bill that would benefit many homeowners who have FHA loans at the time they sell. Looks good to us! Hope it passes.


By Chris Moles
Brokerage Counsel
Intero Real Estate, Inc.

Congress has taken up a bill which would change the manner in which the FHA charges interest on its loans after final payoff. S.488, more commonly referenced as the “Reduce Excessive Interest Payments Act,” was recently introduced in the Senate and forwarded to committee for review. The Act could greatly reduce the final charges imposed on FHA borrowers when they pay off their mortgages. It may also eliminate the stress faced by agents and sellers who feel compelled to time their closings for the end of the month.

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