Insurance Fees Go Up for FHA Mortgage Loans

Insurance for FHA mortgage loans now costs more. All borrowers must pay an upfront insurance premium in order to get an FHA loan. That fee was just increased from 1.75% of the mortgage loan amount to 2.25%.

There is also a monthly payment required to maintain the insurance, which lawmakers are currently trying to increase as well.

The reason for increase is to help FHA replenish dwindling cash reserves that have been used to cover increasing mortgage defaults.

FHA Rates and Information