FHA Increases Mortgage Insurance Premium
Posted by Benjamin Dona on Sunday, February 20th, 2011 at 9:18pm.
You had to know this was coming after Fannie and Freddie announced their home loan fee increases.
Beginning April 18th, 2011, FHA will raise its monthly Mortgage Insurance Premium (MIP) by 25 basis points. For the average FHA borrower, the increase will equate to about an additional $30 per month.
According to HUD's spokesman, the increase was necessary for the following two reasons. First, FHA's capital reserves are currently below a mandated minimum set by the legislature, and the fee increase will help the agency comply with the law. Second, HUD hopes to steer more buyers away from FHA loans and into the private sector by making an FHA loan less desirable.
How commendable on their part.
And so it goes in the mortgage industry. More costs, less choices and government legislators and regulators patting themselves on the back that they are finally bringing things under better control.
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About the Author
Benjamin Dona is the Broker and Owner of Gulf Coast Associates, Realtors in Bonita Springs, Florida. He holds two advanced degrees, an MBA and an MA, and has an extensive background in both business and marketing. In 1998, he founded Gulf Coast Associates, and formed a group of like-minded Realtor® associates dedicated to offering professional Southwest Florida real estate services by concentrating on information, education and the use of leading edge technologies. He also is a recognized expert on the "Net," a much-quoted and read blog author, and a contributor to both national and international news outlets. Benjamin is a member of the National Association of Realtors, the Florida Association of Realtors, and numerous local real estate boards throughout Southwest Florida.
Contact Benjamin Dona at 239-948-3955
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