FHA to Raise MIP on April 18th

New loans insured by FHA on or after April 18, 2011 will have an increased annual mortgage insurance premium (MIP) of a quarter of a percentage point (.25) on all 30- and 15-year loans. The upfront MIP will remain the same at 1.0 percent. What does this mean to you, the home buyer?  It means that if you get an FHA loan for $200,000 after April 18th it is going to cost you about $42.00 more per month.  It could also mean that you would qualify for about $8,000 less due to the increased payment,