Mortgage insurers prep for FHA premium increases

Foreclosures drop to lowest level since 2007 Foreclosures drop to lowest levels since 2007 Posted by Amrock April was a strong month for the residential housing market, as total foreclosures equaled the lowest monthly figure seen in five years, according to RealtyTrac.Freddie Mac: Brexit volatility tapers off, mortgage rates increase Blog Post 8/3 Brexit 1 Month Later: The Impact on Mortgage Rates Just over a month ago, the United Kingdom decided to withdraw from the European Union in a decision commonly known as Brexit.

Starting April 1, the FHA’s annual mortgage insurance premiums for most new loans will jump one-tenth of a percentage point (10 basis points in lending parlance). This is on top of two previous.

Bank of America Puts Short Sales Ahead of REO State of the Foreclosure Market – DSNews –  · Home forfeiture actions during the quarter that included completed foreclosure sales, short sales, and deed-in-lieu-of-foreclosure action, decreased 30.4 percent from last year to 15,506.

or increase their purchasing power. Most FHA buyers will finance a 30-year term with the minimum 3.5% down resulting in a 96.5% loan to value, thus subject to the 0.85% mortgage insurance premium rate.

The Federal Housing Administration is increasing its annual mortgage insurance premium one quarter of one point on all 15-year and 30-year mortgages backed by the agency. The hike is in response to a congressional mandate that gave the FHA permission to increase premiums and keep its insurance fund liquid.

Under the new premium structure, FHA estimates that 2 million borrowers. A December study by the Mortgage Bankers Association said the premium increases had reduced the value of the insurance fund.

Mortgage insurance premiums on FHA-backed loans will increase to 2.25% of the total loan amount on Monday, from 1.75%. That amounts to an additional $500 for every $100,000 in borrowing.

The Federal Housing Administration broke a few hearts last year when it announced back in November that there would not be any cuts to its mortgage insurance premiums. in the FHA’s reverse mortgage.

FHA mortgage insurance is required for all FHA loans. It costs the same no matter your credit score, with only a slight increase in price for down payments less than five percent. fha mortgage insurance includes both an upfront cost, paid as part of your closing costs , and a monthly cost, included in your monthly payment.

 · For the third time in 12 months, the FHA is changing its mortgage insurance costs. Effective for all FHA case numbers assigned on, or after, April 18, 2011, annual mortgage insurance premiums (MIP) will increase 25 basis points.. The change will add $250 to an FHA-insured homeowner’s annual loan costs per $100,000 borrowed, and applies to all borrower’s equally.

Regardless of the value of a home, most mortgage insurance premiums cost between 0.5% and as much as 5% of the original amount of a mortgage loan per year. That means if $150,000 was borrowed and the annual premiums cost 1%, the borrower would have to pay $1,500 each year ($125 per month) to insurance their mortgage.