HUD announced that they will be increasing FHA premiums again. Loans with FHA case numbers pulled on or after 4/9/2012 will be affected. The up front mortgage insurance premium is increasing from 1.0% to 1.75% and the monthly mortgage insurance premium is increasing from 1.15% to 1.25%. This is for 30 year loans with a loan to value greater than 95%. Click here to view the mortgagee letter from HUD.
The up front mortgage insurance premium for a $200,000 loan is currently $2,000 and the monthly mortgage insurance premium is currently $193.58. Under the new premium pricing the upfront mortgage insurance premium will go up to $3500 and the monthly mortgage insurance premium will go up to $211.98 plus the principle and interest will be about $7 higher, so the net impact for a $200,000 loan is about $26/month.
I am here to keep you informed. Please let me know if you have any questions regarding this news.
The up front mortgage insurance premium for a $200,000 loan is currently $2,000 and the monthly mortgage insurance premium is currently $193.58. Under the new premium pricing the upfront mortgage insurance premium will go up to $3500 and the monthly mortgage insurance premium will go up to $211.98 plus the principle and interest will be about $7 higher, so the net impact for a $200,000 loan is about $26/month.
I am here to keep you informed. Please let me know if you have any questions regarding this news.
