FHA to Raise Premiums

FHA has announced that premiums on FHA mortgages will be increased by  .01% on most new mortgages it insures. On jumbo loans over $625,000.00 or more, the rate will increase by .05%. At this time it appears that borrowers will pay premiums for the life of the loan which would be a reversal of a 2001 FHA policy that would allow premiums to be cancelled when debt fell below 78% of the principal balance.