FHA to Increase Cost of Up-Front Mortgage Insurance Premiums
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The Federal Housing Administration will increase the cost of up-front mortgage insurance premiums by 75 basis points as part of efforts to rebuild the agency’s insurance fund.
The increase will apply only to new 30-year, single-family FHA loans and won’t affect the cost of streamlined refinancings, FHA Acting Commissioner Carol Galante said yesterday in a call with reporters. The refinancing program allows FHA borrowers in good standing to qualify for a new, lower-rate FHA loan with minimal paperwork.