Chris Doering Mortgage Explains the FHA Insurance Premium Policy Changes for Consumers Beginning April 1

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FHA raised the annual mortgage insurance premium on most loans that have a case number starting April 1 or later. Borrowers who want to get a mortgage insured by the Federal Housing Administration should act quickly to avoid changes the agency is making to shore up its faltering insurance fund.

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FHA Insurance Premium Policy Changes for Consumers Beginning April 1

On April 1, the Federal Housing Administration raised the annual mortgage insurance premium. On most FHA loans, the premium will increase by 0.10 percentage point or $100 per year for each $100,000 in loan amount. For loans greater than $625,000 with a term longer than 15 years, the increase will be 0.05 percentage point or $50 per year for each $100,000 loan amount.

These premium increases do not apply if a borrower refinances an existing FHA loan that was endorsed on or before May 31, 2009.

Additionally, FHA borrowers will have to continue paying annual mortgage premiums for a longer period of time. This change will apply to new loans with case numbers starting June 3. In the future, if the borrower starts off with a loan-to-value ratio above 90 percent, FHA will collect the premium for the life of the loan. If the original ratio is between 78 and 90 percent, FHA will cancel the premium if the balance drops below 78 percent of the original loan amount anytime after 11 years.

About the company:

Chris Doering Mortgage first opened the doors in April 2007 with the goal of providing local service and accountability to a mortgage industry that can be both intimidating and overwhelming. The commitment to skillfully and ethically deliver the highest quality customer service throughout the mortgage process is second to none with the Chris Doering Mortgage team of professionals. We are constantly educating ourselves and adapting to the changing needs of the real estate industry to meet the expectations of clients. For more information visit their website at

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