Upfront Mortgage Insurance Premiums (UFMIP) will be increasing to 1.75% regardless of loan term, beginning with all Case Numbers assigned on or after April 1, 2012. Annual Premiums (collected monthly) will increase by .10% for all loan amounts under $625,000.00, beginning with all Case Numbers assigned on or after April 1, 2012. FHA was given authority to change the amount charged to borrowers for both Up Front and the Annual premiums. These changes are effective for all case numbers assigned on or after April 1, 2012. Here are 6 things you need to know about these changes:

  1. The Up Front premium is now 1.75% for all standard FHA programs (purchase money mortgages, full credit-qualifying refinances, streamline refinances)
  2. The Annual premium is now 1.25% for LTVs GREATER than 95% on 30 year loans.
  3. The Annual premium is now 1.20% for LTVs EQUAL to or LESS than 95% on 30 year loans.
  4. The Annual premium is now .60% for LTVs GREATER than 90% on 15 year loans.
  5. The Annual premium is now .35% for LTVs EQUAL to or LESS than 90-78.01% on 15 year loans.
  6. These Premiums apply to purchases, regular refinances and streamlines.

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