FHA Introduces Increase In Annual Mortgage Insurance Premiums, Again
One year ago in April, FHA increased the upfront mortgage insurance premium from 1.75% to 2.25%. Then in October, they reduced it back down to 1%. In just 2 months, we’ll see the Annual Mortgage Insurance Premium go up 25 basis points (a .25% increase). This means your MONTHLY payments will go UP effective April 18, 2011.
The increase will impact both 15 and 30-year mortgages.
Here’s an example of how it will impact borrowers: on a $163,000 sale price, the monthly premium would be $118/month, but effective April 18th, it will be $151/mo, a $33 increase.
Read more on Housingwire.com