For those who qualify for low interest loans, things are about to get a little more pricey. Earlier this month, the government accounted the FHA Mortgage Insurance Premium will increase 10-15 points (0.10% on mortgages under $625,000, 0.15% for that amount or more), raising concerns that those affected will be lower income and first-time home buyers. Although one of many increases that have occurred over the past few years, this increase will become permanent and will require insurance for the life of the loan, but is mainly aimed at long-term housing market stability by making loans less risky. However, many rely on FHA loans for low down payments (15.41% of homes in 2012 were purchased using an FHA loan), and making home loans less affordable could put a damper on market recover.

The rate increases are set to go into effect on April 1. In the past, the insurance would fall off at 22% equity, but now monthly insurance payments will be required for 30 years on a 30 year FHA loan, unless a 10% down payment is made at the outset.

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