About Do you need/want an FHA loan? It will soon get more expensive.
Expect to pay more. FHA needs the money and thinks you can afford it. The new fees are set to begin April 1 of this year.
Even though FHA itself doesn’t make the loans, it insures them.
First, the mortgage insurance premium will rise from 1.15% to 1.25% for loans under $625,000. The premium will be even larger for larger loans.
FHA will also increase the upfront mortgage premium from 1.0% to 1.75&.
According to The New York Times, a borrower with a 3.5 percent down payment with a mortgage of $193,000 can expect to pay an upfront mortgage premium alone of $3,377, compared to the prior $1,930
The premium can be rolled into the mortgage.
The FHA expects to raise $1.25 Billion additional revenue by Sept. 2013.
The NAR (Realtors) is strongly opposed to this action.
Read more on mortgage fees.