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Home » Store » News » Equity, Credit Among Reasons That FHA Borrowers Prepay More Slowly

Equity, Credit Among Reasons That FHA Borrowers Prepay More Slowly

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Borrowers in the Federal Housing Administration’s insured mortgage program don’t appear to be riding the refinance wave that many conventional borrowers are happily surfing. The reason? Lack of equity, tight finances and bad credit, experts say. “The incomes of FHA borrowers are lower than the norm and their debts are lower than the norm,” said Stuart Feldstein, president of New Jersey-based SMR Research.
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