Financing-home loans, Real Estate

FHA Mortgage Insurance Premiums to Increase

Logo of the Federal Housing Administration.
Image via Wikipedia

HUD has released Mortgagee Letter 2011-10 announcing an increase in the current Annual Mortgage Insurance Premiums (MIP or known to many as PMI) by 25 Basis Points (BPS)–which is a percentage measure equal to 0.01%– for all FHA Loans (a federally insured loan allowing people to put as low as 3.5% down to purchase a home).  Upfront MIP will not be changed.

Upfront MIP:

The upfront premium will remain at 100 BPS and will be charged for all amortization terms.  

Annual Premiums:

For FHA purchases and refinances, the annual premium has been increased.  The Annual MIP shown in basis points below is to be remitted on a monthly basis and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule:

LTV >15 Year Loan-Annual MIP LTV <=15 Year Loan – Annual MIP
<= 95% 110 BPS (currently 85 BPS)   <= 90% 25 BPS (currently zero)
> 95% 115 BPS (currently 90 BPS)   > 90% 50 BPS (currently 25 BPS

Effective Date: This increase in Annual Mortgage Insurance Premiums will be effective for all FHA case numbers assigned on or after April 18, 2011. 

I am not a lender, so please check with your lender for particulars on any loan programs.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s