It’s Official – FHA Increasing MIP Fee

FHA will be raising its mortgage insurance premium (MIP) from 1.75% to 2.25% this spring. It would behoove all those interested in financing their purchase of a home with FHA financing to do this now versus latter.  In effect, the monthly payment will increase by .5%.  Compounding this is the Federal Reserve has allocated 1.4 trillion dollars to buy mortgage back securities, artificially keeping interest rates down. This will end sometime in March 2010.  It is likely that the monthly mortgage payments will be going up.  Edina Realty