This information was sent to me today by my friend and loan officer, Shelly Wilson, with PrimeLending. These changes are important since so many of our clients use FHA financing, mainly because of the low down payment option. Thanks for the information Shelly!
New FHA Annual (monthly) MIP Increases
These changes were effective April 18, 2011
(for case numbers assigned on or after this date)
The Upfront Mortgage Insurance remains at 1.00%.
The Annual Insurance Premium will increase from .90% to 1.15% for LTV's greater than 95% on 30 yr loans.
The Annual Insurance Premium will increase from .85% to 1.10% for LTV's less than or equal to 95% on 30 yr loans.
The Annual Insurance Premium will increase from .25% to .50% for LTV's greater than 90% on 15 yr loans.
The Annual Insurance Premium will increase from 0% to .25% for LTV's less than or equal to 90% on 15 yr loans.
In other words: on a $100,000 FHA 30 year fixed this equals a $21 higher monthly payment for homebuyers.
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