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HUD Raises Premiums on FHA-Insured Loans
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You're Now Reading:
HUD Raises Premiums on FHA-Insured Loans
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
HUD Raises Premiums on FHA-Insured Loans
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February 15, 2011 (Jeff Alan)
mortgage-fees-up-image
The Department of Housing and Urban Development (HUD) has announced that it will be raising premiums on mortgage loans insured by the Federal Housing Administration (FHA). FHA Commissioner David H. Stevens stated that the new premium structure of FHA insured mortgage loans was part of an ongoing effort to strengthen the FHAs capital reserves.

The cost of the annual mortgage insurance premium (MIP) will be increased by a quarter of a percentage point (0.25) on all 15 and 30 year fixed rate mortgages beginning on April 18, 2011.

“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said Stevens. “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

The proposed change was announced last week as part of the Obama Administration’s report to Congress, which outlined the Administration’s plan to reform the nation’s housing finance system. This premium change was also detailed in President Obama’s fiscal year 2012 budget. The Administration’s housing finance plan also recommended that Congress allow the present increase in FHA conforming loan limits to expire as scheduled on October 1, 2011.

On average, new FHA borrowers will pay approximately $30 more per month. This marginal increase is affordable for almost all homebuyers who would qualify for a new loan.

The increased premium allows the FHA to increase revenues and add stability to its Mutual Mortgage Insurance (MMI) Fund. The newer premium is expected to add approximately $3 billion in revenue annually to the Fund. The Fund currently has capital reserves of approximately $3.6 billion.

Existing and HECM loans insured by FHA are not impacted by the pricing change as the policy affects loans only made after April 18th, 2011.

The full press release can be viewed here.

Tags: HUD, FHA, mortgage loans, mortgage insurance premium, housing finance system, conforming loan limits, borrowers

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at Mortgageloanrateupdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Home Buying
Tips
Home Selling
Tips
About
Mortgages
Mortgage
Calculator
Mortgage
Rates

February 15, 2011 (Jeff Alan)
mortgage-fees-up-image
The Department of Housing and Urban Development (HUD) has announced that it will be raising premiums on mortgage loans insured by the Federal Housing Administration (FHA). FHA Commissioner David H. Stevens stated that the new premium structure of FHA insured mortgage loans was part of an ongoing effort to strengthen the FHAs capital reserves.

The cost of the annual mortgage insurance premium (MIP) will be increased by a quarter of a percentage point (0.25) on all 15 and 30 year fixed rate mortgages beginning on April 18, 2011.

“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said Stevens. “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

The proposed change was announced last week as part of the Obama Administration’s report to Congress, which outlined the Administration’s plan to reform the nation’s housing finance system. This premium change was also detailed in President Obama’s fiscal year 2012 budget. The Administration’s housing finance plan also recommended that Congress allow the present increase in FHA conforming loan limits to expire as scheduled on October 1, 2011.

On average, new FHA borrowers will pay approximately $30 more per month. This marginal increase is affordable for almost all homebuyers who would qualify for a new loan.

The increased premium allows the FHA to increase revenues and add stability to its Mutual Mortgage Insurance (MMI) Fund. The newer premium is expected to add approximately $3 billion in revenue annually to the Fund. The Fund currently has capital reserves of approximately $3.6 billion.

Existing and HECM loans insured by FHA are not impacted by the pricing change as the policy affects loans only made after April 18th, 2011.

The full press release can be viewed here.

Tags: HUD, FHA, mortgage loans, mortgage insurance premium, housing finance system, conforming loan limits, borrowers

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at MortgageLoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

February 15, 2011 (Jeff Alan)
mortgage-fees-up-image
The Department of Housing and Urban Development (HUD) has announced that it will be raising premiums on mortgage loans insured by the Federal Housing Administration (FHA). FHA Commissioner David H. Stevens stated that the new premium structure of FHA insured mortgage loans was part of an ongoing effort to strengthen the FHAs capital reserves.

The cost of the annual mortgage insurance premium (MIP) will be increased by a quarter of a percentage point (0.25) on all 15 and 30 year fixed rate mortgages beginning on April 18, 2011.

“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said Stevens. “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

The proposed change was announced last week as part of the Obama Administration’s report to Congress, which outlined the Administration’s plan to reform the nation’s housing finance system. This premium change was also detailed in President Obama’s fiscal year 2012 budget. The Administration’s housing finance plan also recommended that Congress allow the present increase in FHA conforming loan limits to expire as scheduled on October 1, 2011.

On average, new FHA borrowers will pay approximately $30 more per month. This marginal increase is affordable for almost all homebuyers who would qualify for a new loan.

The increased premium allows the FHA to increase revenues and add stability to its Mutual Mortgage Insurance (MMI) Fund. The newer premium is expected to add approximately $3 billion in revenue annually to the Fund. The Fund currently has capital reserves of approximately $3.6 billion.

Existing and HECM loans insured by FHA are not impacted by the pricing change as the policy affects loans only made after April 18th, 2011.

The full press release can be viewed here.

Tags: HUD, FHA, mortgage loans, mortgage insurance premium, housing finance system, conforming loan limits, borrowers

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
MORTGAGELOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.