FHA Mortgage Insurance Changes and Refi Program Updates
New Monthly Mortgage Insurance Premium Schedule
The MIP schedule for FHA loans with terms greater than 15 years (e.g. 30 year fixed FHA) is as follows :
- For loans with LTV greater than 95 percent: 1.250% percent annually ($200,000 loan amount would have an a monthly mortgage insurance payment of $208).
- For loans with LTV less than, or equal to, 95 percent : 1.200% percent annually.
New Up-Front Mortgage Insurance Premium
- The Up-Front Mortgage Insurance Premium was increased from 1 percent to 1.75 percent of the base loan amount. This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage and will continue to calculate actual premium charges against the base loan amount before adding any financed UFMIP. This change is effective for case numbers assigned on or after April 9, 2012. (Example-$200,000 loan will have $3,500 added to the loan amount)
FHA Streamline Refinance MIP Rates for ‘Older’ Loans (Refi Program)
Not everyone will pay the FHA’s new mortgage insurance rates. For FHA-backed homeowners whose mortgages are older; whose loans were endorsed prior to June 1, 2009, FHA mortgage insurance is getting cheaper, not more expensive. Some current FHA-backed homeowners can now use the FHA Streamline Refinance program without fear of “more mortgage insurance”.
New Up-front Mortgage Insurance Premium Schedule For ‘Older’ Loans (Refi Program)
Beginning June 11, 2012, all new FHA mortgages replacing a mortgage from prior to June 1, 2009, will pay an upfront mortgage insurance premium of 0.01%, or $10 per $100,000 borrowed.
This is a major reduction off the “full price” UFMIP paid by everyone else.
New Monthly Mortgage Insurance Premium Schedule For ‘Older’ Loans (Refi Program)
Also beginning June 11, 2012, if you’re replacing an FHA mortgage endorsed prior to June 1, 2009, and your new FHA mortgage has a term greater than 15 years (e.g.; 20-year fixed FHA, 30-year fixed FHA), your new loan’s MIP schedule is as follows :
- For loans with LTV greater than 95 percent : 0.55% percent annually
- For loans with LTV less than, or equal to, 95 percent : 0.55%% percent annually