Quantcast

FHA mortgage insurance premiums may be going up, but according to a February 27, 2012 press release, the changes are not severe, adding to about five dollars per month for most new FHA home loans where applicable.

FHA Mortgage Loan Rates

December 15, 2017
FHA Rates for December 15, 2017
Offering 30 Year Fixed Mortgages
Offering 15 Year Fixed Mortgages
Use our mortgage calculators
to see what you can afford!
FHA.com is a private company, is not a government agency, and does not make loans.

Prequalify Now!

Compare mortgage rates for your refinance or home purchase loan.

CHOOSE A LOAN TYPE

then
get
your

FREE CREDIT SCORE

Do you know what's on
your credit report?
The Path to Homeownership
FHA.com is a private company, is not a government agency, and does not make loans.

FHA Loan Articles

News and Updates for Homeowners

FHA Announces Mortgage Insurance Premium Increase

March 20, 2012 - The Department of Housing and Urban Development and the Federal Housing Administration will increase FHA Mortgage Insurance Premiums according to a press release dated February 27, 2012.

The press release, HUD No. 12-037, states, "FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent."

The increases are scheduled take effect in stages--some changes happen in April 2012, while others take effect in June of 2012. The FHA will issue a mortgagee letter fully explaining the changes and how they affect new home loans on and after those dates.

FHA mortgage insurance premiums may be going up, but according to the press release, the changes are not severe, adding to about five dollars per month for most new FHA home loans where applicable.

The increased mortgage insurance costs are part of the Temporary Payroll Tax Cut Continuation Act of 2011, which requires FHA to increase the annual MIP.

As stated previously, the FHA Up Front Mortgage Insurance Premium is also affected; the current rate of one percent will increase to 1.75 percent of the base loan amount.

According to FHA.gov, "This increase applies regardless of the amortization term or LTV ratio. FHA will continue to permit financing of this charge into the mortgage. This change is effective for case numbers assigned on or after April 1, 2012,"

The press release also adds, "Borrowers already in an FHA-insured mortgage, Home Equity Conversion Mortgage (HECM), and special loan programs outlined in FHA's forthcoming Mortgagee Letter will not be impacted by the pricing changes announced today."

For more information on the announced FHA mortgage insurance premium increases, visit the FHA official site.