FHA Mortgage Insurance Premiums FHA 2011

Effective April 18, 2011 The charts below illustrate the 25 basis points (bps) increase in the Annual Mortgage Insurance Premiums. There are no changes to the Upfront Mortgage Insurance Premium (UFMIP). It is anticipated that this increase will have minimal impact on borrowers but will significantly strengthen the capital position of the MMIF.

The increase in the Annual Mortgage Insurance Premiums for forward mortgage amortization terms is effective for case numbers assigned on or after April 18, 2011.

Upfront Premiums:
Upfront premiums will not change on April 18, 2011. FHA will continue to charge an upfront premium in an amount equal to the following percentages of the mortgage:

Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.00 percent
Streamline Refinances (all types) = 1.00 percent
Home Equity Conversion Mortgages = 2.00 percent

Annual Premiums:
Annual premiums will increase by 0.25% effective April 18, 2011.

For FHA traditional purchase and refinance products, the annual premium, 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 (effective with FHA case numbers assigned on or after 4/18/2011):

LTV Ratio	Annual Premium for 15 Years and up to 30 Years	LTV Ratio	Annual Premium for Loans Under 15 Years
95.00% and Under	1.10%	90.00% and Under	0.25%
95.01% and Over	1.15%	90.01% and Over	0.50%

How long will I have monthly FHA mortgage insurance? Years will be determined when the loan balance equals 78% of the initial sale price or appraised value, which ever is lower, provided the mortgagor has paid the annual mortgage insurance premium for at least 5 years (refer to HUD 92900)

Posted by Angelo Datseris, CRMS on April 19th, 2011 2:51 PMPost a Comment (0)