We're only days away now from FHA increasing their upfront mortgage insurance premium (UFMIP) which will be effective April 9, 2012. Currently the rate is 1% of the loan amount. Effective with case numbers issued April 9, 2012 and later, the premium will increase to 1.75%.
FHA's annual mortgage insurance (MIP) is paid monthly. The bps is multiplied by the FHA base loan amount to determine the premium and then divided by 12 months. The chart with the new rates is below.
If you are working with someone who's purchasing with an FHA loan, remind them of this significant change as anything you write on after April 9th will be affected.
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