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FHA loans to get a bit more expensive

February 15, 2011

HUD recently announced that they will once again be adding to the cost of FHA loans.  Specifically, borrowers can expect to see a 0.25% increase in monthly mortgage insurance premiums.  This move is primarily intended to aid HUD in meeting the mandated capital reserve requirements.

In real world terms, the impact on borrower’s payment will be less than $50 per month.  While this will not break the bank for the average homebuyer, this definitely supports the trend the slow steady trend of increased cost of borrowing.

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