April 6th, 2012 3:59 PM by Lori Speight
The upfront insurance premium charged on FHA-insured mortgages for home purchases will increase from 1 percent to 1.75 percent on April 9, and the annual FHA mortgage insurance premiums will rise by one-tenth of a percentage point.
The cost of a $200,000 FHA mortgage will rise by about $24 a month, assuming the borrower includes the upfront charge in the amount financed through a 30-year mortgage; a fee increase for jumbo loans and some 15-year loans will be added June 11.
The fourth fee increase in the last three years should boost the FHA's reserves by more than $1 billion through 2013, according to HUD.
Source: "FHA Fees to Increase on Monday," NASDAQ (April 5, 2012)
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