WASHINGTON – April 9, 2012 – The upfront insurance premium charged on FHA-insured mortgages for home purchases increased from 1 percent to 1.75 percent today, and annual FHA mortgage insurance premiums rose by one-tenth of a percentage point.
For homebuyers, that means the cost of a $200,000 FHA mortgage rose by about $24 a month, assuming the borrower includes the upfront charge in the amount financed through a 30-year mortgage.
Jumbo loans did not change today, but a fee increase for jumbo loans and some 15-year loans will be added June 11.
While homebuyers won’t enjoy the extra cost, the U.S. Department of Housing and Urban Development says the extra income generated by the fee increase – the fourth one in three years – should generate more than $1 billion by 2013.
Source: “FHA Fees to Increase on Monday,” NASDAQ (April 5, 2012)