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:
Blog Category: mortgage insurance
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.
When you’re buying a home or thinking of buying one, you’ll need to factor in many costs other than the home loan. If you’re not making a 20 percent down payment, and most people don’t, private mortgage insurance, or PMI, is at the top of the list of costs to consider.