FHA Mortgage Insurance On the Rise
August 27, 2008
More and more borrowers are turning to the Federal Housing Administration for assistance in obtaining a mortgage, thanks in part to the foreclosure prevention program which was just brought into legislation. As FHA takes on more and more of the market share of the housing market, increasing their mortgage insurance premiums would help them to hedge against some potential risk factors. The Federal Housing Administration will increase the cost of its mortgage insurance by 25 basis points to 1.75 percent of the total loan amount. That amounts to a $500 up-front charge on a mortgage of $200,000.
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