Thursday, January 21, 2010

FHA Increasing Fees

Click on the title to link. The news just gets better and better. HUD announced today that it is going to raise the upfront Mortgage Insurance Premium (MIP) from 1.75% of the loan amount to 2.25% sometime this spring/summer. Although this amount is rolled into the loan and is not a direct cost out of your pocket, it does raise the loan amount which, consequently, raises the payment.

Further, they are petitioning Congress to increase the monthly mortgage insurance premium, which would also increase the payment. So qualifying will, potentially, become more difficult now. FHA says, "Not everybody should own a home." Really? Daaaahhh! Maybe that explains a big reason for the mess we are in now. Of course not everybody should own a home. So the answer to that in their mind...make it harder for those who should own a home to buy one. That makes sense.

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