Blog Category: FHA mortgage insurance
FHA (The Federal Housing Administration), is soon going to raise their mortgage insurance costs, again. FHA is the largest insurer of low down payment mortgages, and it has been announced recently that they are in trouble, and may be in need of a taxpayer bailout. This told me at that time that their fees would increase soon, and soon has finally arrived. The FHA mortgage fee details are:
FHA mortgage insurance costs are going up…again. It is almost like watching the price of stamps constantly creep up. However, postage prices creep up due to inflation, whereas FHA mortgage insurance cost goes up due to waste, inefficiency and massive losses at FHA. Here is a breakdown of the increases:
A long expected shakeup in the way FHA calculates its Mortgage Insurance Premium is expected to take effect on September 7th, 2010. (*UPDATE: I now hear FHA will make these changes on all new FHA loans effective October 4, 2010). I first wrote about this here. Now the proposed changes have taken on a new cost structure.