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FHA MIP Premiums

November 11th, 2014 by [shareaholic app="share_buttons" id="27157108"]
Mortgage insurance is a policy that protects lenders against losses that result from defaults on home mortgages. FHA requirements include mortgage insurance for all FHA loans. Here’s the run down on the amounts of mortgage insurance on different FHA loans.

Current Up-Front Mortgage Insurance Premium

The UPMIP is currently at 1.75% of the base loan amount. This applies regardless of the amortization term or LTV ratio.

Current Up-Front MIP on Certain Streamline FHA Refinances

SF forward streamline refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the UFMIP is currently 0.01 percent of the base loan amount.

Current Annual MIP on Certain Streamline FHA Refinances

FHA Streamline refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the Annual MIP will be 55 bps, regardless of the base loan amount and takes effect on or after June 11th, 2012.

Annual MIP Premium

Annual Mortgage Insurance Premiums for all case numbers dated on or after June 3, 2013 for loans with an Loan to Value of less than or equal to 78% and with terms up to 15 years. The annual MIP for these loans is 45 basis points (45% of 1%). The following has already been in effect for all case numbers dated on or after April 1st, 2013.

On terms > 15 years and loan amounts < = $625,500 – If the loan to value is 95%, the new Annual Premium is 135 basis points (bps).

On terms < = 15 years and loan amounts < = $625,500 – If the loan to value is 90%, the new Annual Premium is 70 basis points (bps).

Note: SF forward mortgages with amortization terms of 15 years or less, and a loan to value ratio of 78% or less, remain exempt from the Annual MIP (Mortgagee Letter 2011-35).

FHA Annual Mortgage Insurance Premium for loans over $625,000
FHA adds an additional 5 basis points to mortgages with base loan amounts exceeding $625,000.

On terms > 15 years and loan amounts >$625,500 – If the loan to value is 95%, the Annual Premium is 155 basis points (bps).

On terms $625,500 – If the loan to value is 78.01% – 90.00%, the Annual Premium is 70 basis points (bps). If the loan to value is >90%, the Annual Premium is 95 basis points (bps).

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