FHA Increases Mortgage Insurance Premiums
It’s official! FHA is increasing the up-front mortgage insurance premium to shore up it’s finances. Beginning with case numbers assigned on Apri 5th, 2010 the fee increases from 1.75% to 2.25%. Almost as importantly, the fee for Streamline refinances increases from 1.50% to 2.25%. This makes the FHA loan 1/2 point more expensive than before.
As I’ve said before, FHA is balancing their shortfalls from yesterday’s defaults with tomorrow’s borrower.
The Monthly Mortgage Insurance factors will be increasing “this summer” but nothing official released yet. The remain the same for the time being…
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