Starting Monday, borrowers will be charged higher mortgage insurance premiums on new Federal Housing Administration loans. The annual fee on the majority of FHA loans will rise by 0.1 percent on April 1.
This marks the third time the FHA has increased its mortgage insurance premiums in two years. And since 2008, the fee has nearly tripled.
Some borrowers are rushing to beat the April 1 deadline.
The FHA premium hikes are part of an effort by the agency to increase its insurance fund. In early June, the FHA will require borrowers who take out new FHA loans to pay for mortgage insurance for the entire life of the loan.
Source: “FHA Loans Get Pricer April 1,” Bankrate.com (March 26, 2013) and “Mortgage insurers prep for FHA premium increases,” HousingWire (March 28, 2013)
