pmi: FHA to Increase Up-Front Mortgage insurance Premium
- 03/10/10 02:06 AM
There is an upcoming change to FHA loans. FHA has decided to slightly increase the amount of the ‘up-front' mortgage insurance premium charged to buyers. The old fee was 1.75% of the loan amount. Then new fee will be 2.25%, beginning with Case #'s assigned after Monday April 5th. This fee is typically financed into the new loan. The reason FHA has taken this step is due to the large amount of losses incurred by the insurance fund for delinquent & foreclosed loans. FHA insurance is not a taxpayer funded program, rather it is self financed by charging both an upfront … (1 comments)
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