FHA to increase MIP

Come April 18, the FHA will increase its annual mortgage insurance premium by 25 basis points on 30- and 15-year mortgages.

This move, announced in February in HUD’s Mortgage Letter 11-10, stated that the move will “ensure that FHA will continue its historic role of providing a home financing vehicle during during periods of economic volatility and its mission of helping under-served borrowers.” The FHA anticipates that

“this increase will have minimal impact on borrowers but will significantly strengthen the capital position” of FHA’s Mutual Mortgage Insurance Fund.

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