FHA To Raise Insurance Premiums April 1st
The Federal Housing Administration (FHA) will raise insurance premiums on home mortgages on April 1st, 2012 in the hopes to boost its Mutual Mortgage Insurance Fund. Any home buyer looking to get a FHA mortgage should contact their Guaranteed Rate loan officer to avoid any price increase on their loans.
Premiums will be raised from 1% to 1.75%, regardless of your loans term or LTV ratio. Your annual insurance premium will be raised by 10 basis points if your loan is under $625,000 or 35 points for loans above $625,000 (however, this later fact won't be implemented until June). Also, reverse mortgages and other special loan programs will be exempt.
Contact your Guaranteed Rate loan officer for more information.