Mortgage Insurance is on the rise again. It just recently rose in October of 2010 from a monthly rate factor of .55% to .9%. To give you an idea how that works if someone has a $100,000 loan they use to pay $550 per year and now pay $900. Starting in April of this year the Mortgagae insurance rate factor will increase to 1.15% or $1,150 per year. We are now over double where it was back in September of 2010. Sure the upfront fee has decreased from 2.25% upfront to 1% but overall this is still much more cost to the consumer who is required to keep the monthly mortgage insurance for at least 5years.
It is crazy that with all the regulations that are coming up to protect the consumer that their cost keeps getting higher. If you are on the verge of buying a home with an FHA loan I would recommend getting a accepted signed purchase agreement prior to April to save some cost.
