Borrowers, FHA and The Nat’l Assoc. of Realtors

Borrowers Face Higher Monthly FHA Premiums

The FHA has increased the mortgage insurance premium (MIP) by 25 basis points for loans with case numbers assigned on or after April 18. This increase, which is the third int he last 12 months, is necessary to resotre the agency's finances, which remain under a required 2 percent reserve, the FHA says. The National Association of Realtors opposes this increase, because it will cost the average buyer an extra $30.00 per month that's an extra $360 per year. Existing borrowers are not affected. The upfront MIP will remian unchanged at 1percent. for more www.hud.gov (mortgage letter 11-10)