Homeowners with an FHA loan will have to fork over about $30 more a month according to federal officials. That’s because the annual mortgage insurance premium, which is broken into monthly payments will increase by one-fourth of a percent. The increase begins on April 18 on new loans, according to reports.

FHA or Federal Housing Administration loans are the most popular type of mortgages. The increase will vary depending on the amount of the loan and the term of the mortgage, but experts estimate the average impact to be about $30 a month. The reason for the increase is to boost capital reserves for the FHA which are currently below the set minimum due to the increase in foreclosures and defaulted loans. Last year the reserves were supposed to be at $18.5 billion, but in reality were only at $4.4 billion, according to a spokesperson for the FHA.

With the monthly increase the agency expects to add an extra $3 billion to its reserves each year. “After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” FHA Commissioner David Stevens told reporters. “This quarter point increase in the annual MIP is a responsible step toward meeting the congressionally-mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

In a disturbing turn, more U.S. drivers are choosing to drop their auto insurance coverage in order to make it through the recession financially intact. It seems that many look at coverage as an expense they can cut in order to save cash for more important things.

Auto insurance is an important form of protection to have, for you and all other motorists who share the road with you. Auto insurance is a legal requirement to save all motorists from a law suit resulting from a traffic infraction or an accident. Property owners are also protected from loss due to damages done in an accident.

In these days of the Internet, finding out about getting an auto insurance rate has never been easier. When you visit some insurance company websites to get an online quote, you can actually get several quotes at one time in less than half an hour. Be aware that there can be a vast difference in insurance rates from one company’s website to another. In fact, statistics have proven that the rates can differ as much as 300 percent! For the best rates, it is a good idea to check out as many different companies as possible.