Senate Approves Higher Government Mortgage Fees

CNBC.com ^ | August 5, 2010

[Oldeconomybuyer]

Higher monthly fees are coming for consumers who take out home loans guaranteed by the Federal Housing Administration, the primary source of mortgages for first-time homebuyers.

Earlier this year, the FHA raised the upfront fee to 2.25 percent of the total mortgage amount from 1.75 percent. Agency officials want to lower that to 1 percent.

The combined impact of lowering the upfront fee and raising the monthly fee would mean a borrower taking out a mortgage of $170,000 at an interest rate of 5 percent would pay an extra $38 a month.

[Oldeconomybuyer]

"I can make a firm pledge, under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."

[mrsmith]

I never realized... you can’t spell ‘free’ without ‘fee’.

[sunmars]

Govt sticks the hand in your pocket again and pretends you wont notice.

[radioone]

“Agency officials want to lower that to 1 percent.” A little of that Obama Stash into their campaign financing fund should take care of this minor detail.

[HereInTheHeartland]

FHA should be a wealth of profit on any loans originated in the last 2-3 years.
Default rates should be low.