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FHA to hike premiums on mortgages
CNN: Government-insured mortgages are about to get more expensive.
The Federal Housing Administration, which is the largest insurer of low-down payment mortgages, announced Wednesday that it will raise premiums by 10 basis points, or 0.1%, on most of the new mortgages it insures. A borrower opting for a 30-year, fixed-rate mortgage who puts 5% or more down, for example, will now pay an annual insurance premium of 1.3% of their outstanding balance. While someone who puts less than 5% down will pay a premium of 1.35%.
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