According to Fannie Mae’s national flood survey, homeowners are expressing growing apprehension over the rising costs of flood insurance premiums, which are negatively impacting the affordability of owning a home. The survey reveals a significant worry among homeowners, as they fear these premium hikes might hinder their ability to afford their mortgage payments. This concern is driven by the fact that flood insurance is required for homes situated in flood-prone areas and is typically an additional expense on top of mortgage payments.
Key points from the survey include:
– Growing concerns: Homeowners are increasingly worried about the escalating costs of flood insurance premiums and how it affects the affordability of owning a home.
– Affordability impact: The rising premiums are causing homeowners to question whether they will be able to manage the additional expense on top of their mortgage payments.
– Mandatory requirement: Flood insurance is required for homes located in flood-prone areas, making it an essential and unavoidable expense for homeowners in certain regions.
The survey indicates a pressing need for solutions that address the concerns of homeowners and enable them to navigate the financial implications of flood insurance premium hikes. As insurance costs continue to rise, it is crucial for stakeholders in the mortgage industry to explore strategies to mitigate the financial strain on homeowners and maintain affordable housing options.
You can read this full article at: https://www.housingwire.com/articles/homeowners-are-increasingly-worried-about-flood-insurance-affordability-and-rising-risk/(subscription required)
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