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Last week, we notified you of the Federal Housing Administration’s (FHA) plans to increase the annual mortgage insurance premiums for FHA loans to 0.85 percent or 0.9 percent, depending on the loan-to-value (LTV) ratio of the loan. Once these new fees are in effect, the average homebuyer will pay up to $38 per month in mortgage insurance premiums for their FHA loan. In order to give lenders more time to transition to the new fees, HUD has delayed the implementation of the new fees until Oct. 4, 2010. For more information on the reasoning behind the increased fees, you can review a letter from HUD explaining the changes by clicking here.
