FHA’s Monthly Mortgage Insurance looking to Increase!

Recently the House of Representatives gave HUD(FHA) the ability to raise their monthly mortgage insurance premium.  They have given power to raise it up to 1.55% monthly.  Currently FHA's mortgage insurance is .55% a month.  Fha has not decided what to raise the monthly MI to at this time, but has mentioned that .90% should be sufficient.  FHA is waiting for the Senate to pass this bill.  If the Senate does pass this bill, look for the mortgage insurance to increase later in the year.  I will keep you updated as the Senate votes on this.  Please keep in mind that this information is not to give you a Heart Attack.  It is just to keep you informed, too many times there are rumors floating around and I want to make sure you know the truth.  I highly doubt that FHA will raise the monthly mortgage insurance to 1.55%, but this does show that there is most likely to be an increase.   The MI increase will increase the monthly payment for buyers and those refinancing.  Possibly keeping some borrowers from getting approved.  Please call or email me with any questions.