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FHA Mortgage Insurance premiums

This page covers the following FHA Mortgage insurance premiums:

  1. FHA Upfront Premiums (Purchase Money Mortgages and Full-Credit Qualifying Refinances)
  2. Annual premiums (paid monthly) FHA mortgage insurance (FHA MIP )(15 years or less & terms greater than 15 years)
  3. FHA Streamline Premiums
  4. Jumbo Loans FHA Mortgage Insurance
  5. Home Equity Conversion Mortgage (HECM) Loans Mortgage Insurance

FHA Upfront Premium (FHA MIP Factor)

Effective for FHA loans for which the case number is assigned on or after April 01, 2013, for FHA traditional purchase and FHA refinance products, the FHA upfront premium, shown in basis points below is as follows:

Mortgage Type

FHA Upfront Premium Requirement

Purchase Money Mortgages and Full-Credit Qualifying Refinances

175 BPS

Streamline Refinances (all types) (FHA loans that were endorsed AFTER May 31, 2009

175 BPS

 

Annual premium (paid monthly) FHA mortgage insurance with case numbers assigned on or after April 01, 2013.

 

(Monthly payments, included in your monthly escrow account)

 

For FHA loans for with a case number assigned on or after April 01, 2013, for FHA traditional purchase and FHA 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:

For amortization terms greater than 15 years   (>15) is collected according to the following schedule:

  • 30-year loan terms with loan-to-value over 95% : 1.35 percent annual MIP
  • 30-year loan terms with loan-to-value under 95% : 1.20 percent annual MIP

Base Loan Amount

LTV (Loan to Value)

Annual Premiums for Loans (greater than) >15 Years     (20, 25 or 30 year loans)

< $625,500 (Equal to or less than $625,500)

= or < 95% (Equal to or less than 95%)

130 BPS

< $625,500 (Equal to or less than $625,500)

> 95% (Greater than 95%)

135 BPS

Above $625,500 (Equal to or less than $625,500)

= or < 95% (Equal to or less than 95%)

150 BPS

>= or < $625,500 (Equal to or less than $625,500)

> 95% (Greater than 95%)

155 BPS

For amortization terms equal to or less than 15 years  is collected according to the following schedule:

(Monthly payments, included in your monthly escrow account)

  • 15-year loan terms with loan-to-value over 90% : 0.60 percent annual MIP
  • 15-year loan terms with loan-t0-value under 90% : 0.35 percent annual MIP

 

15-year FHA mortgages for which the loan-to-value is less than 78% are exempt from FHA annual mortgage insurance.

Base Loan Amount

LTV (Loan-to-Value)

Annual Premiums for Loans = or <15 Years

< $625,500 (Equal to or less than $625,500)

= or < 90%(Equal to or less than 90%)

45 BPS

< $625,500 (Equal to or less than $625,500)

> 90% (Greater than 90%)

70 BPS

Above $625,500 (Above $625,500)

<95% (Equal to or less than 95%)

70 BPS

Above $625,500 (Above $625,500)

> 95% (Greater than 95%)

95 BPS

Effective with new case numbers assigned on or after April 18, 2011 the MIP on all FHA loans is increasing.

Example of Annual Mortgage Insurance Premium Increase

30 Year Term 96.5% LTV

Average Loan

After April 2013

135 bps

Sales price

$163,000

Min Down payment 3.5%

$5,705

Loan Amount (no UFMIP)

$157,295

Monthly MIP Amount

$183.375

Increase in Payment

 

Home Equity Conversion Mortgage (HECM) Loans

Effective for all HECM loans for which the case number is assigned on or after
October 4, 2010, FHA will increase the annual premium which is collected on a monthly basis. This policy change will not affect the upfront premiums collected.

The annual premium, shown in basis points below is to be remitted on a monthly basis, and will be charged according to the following schedule:

Premium Type

Basis Points

Upfront

200 BPS

Annual

125 BPS

FHA Streamline Refinance MIP Rates

(For Loans Endorsed Before June 1, 2009)

If your existing FHA mortgage was endorsed prior to June 1, 2009, your mortgage insurance premiums have been “grandfathered”. You can refinance to the FHA Streamline Refinance program and pay reduced rates for both for upfront MIP and annual mortgage insurance premiums.

Upfront MIP for FHA Streamline refinances

 

For an FHA Streamline Refinance that replaces a loan endorsed prior to June 1, 2009, the new FHA mortgage’s upfront mortgage insurance is equal to 0.01 percent of the loan size, or 1 basis point. For example, if your new FHA Streamline Refinance is for $100,000 mortgage, the FHA will assess a $10 upfront mortgage insurance premium (MIP) to be paid by you at closing. The FHA automatically adds the $10 payment to your new loan balance.

Annual MIP for FHA Streamline refinances

FHA Streamline Refinance Loans that replace FHA loan endorsed prior to June 01, 2009 will use the old FHA mortgage insurance schedule :

  •  The Annual MIP is 0.55% annually, or 55 basis points for all loans.
  • 15-year loan terms with loan-to-value over 90% : 0.55 percent annual MIP
  • 15-year loan terms with loan-to-value under 90% : 0.55 percent annual MIP
  • 30-year loan terms with loan-to-value over 95% : 0.55 percent annual MIP
  • 30-year loan terms with loan-to-value under 95% : 0.55 percent annual MIP
  • 15-year fixed rate mortgages with LTVs of 78% or less pay no annual MIP.
  • There is no “jumbo FHA mortgage premium”, an FHA mortgage in excess of $625,500, there is no additional mortgage insurance premium.
Click here for today’s FHA Streamline Refinance mortgage rates.

FHA Streamline MIP For Loans Endorsed On/After June 1, 2009

If your existing FHA mortgage was endorsed on, or after, June 1, 2009, your new FHA mortgage insurance premiums are the same as for all other FHA mortgage applicants.

Upfront MIP for FHA Streamline refinances

For an FHA Streamline Refinance that replaces a loan endorsed on, or after, June 1, 2009, the new FHA mortgage’s upfront mortgage insurance is equal to 1.75 percent of the loan size, or 175 basis points. For example, if your new FHA Streamline Refinance is for $100,000 mortgage, the FHA will assess a $1,750 upfront mortgage insurance premium (MIP) to be paid by you at closing. The FHA automatically rolls the $1,750 payment into your new loan balance. Not all FHA homeowners will pay this full amount, however. One great thing about the FHA Streamline Refinance program is that the FHA offers refund on previously-paid upfront MIP so long as you’re still within the first 3 years of your mortgage. As an example, refinancing after 11 months grants a 60% refund, but waiting just one more month lowers that refund down to 58%. This is why is rarely a good idea to “wait to refinance” with the FHA. With the FHA Streamline Refinance, the sooner you refinance, the bigger your MIP refund, and the lower your final loan size. This preserves home equity. You can review your own FHA mortgage insurance refund chart at top.
Click here for today’s FHA Streamline Refinance mortgage rates.

Annual MIP for FHA Streamline refinances

For an FHA Streamline Refinance that replaces a FHA loan endorsed on, or after, June 1, 2009, the annual MIP varies based on loan type and loan-to-value. The annual MIP schedule, for loans with case numbers assigned on or after, June 1, 2009 :

  • 15-year loan terms with loan-t0-value under 90% : 0.35 percent annual MIP
  • 15-year loan terms with loan-to-value over 90% : 0.60 percent annual MIP
  • 30-year loan terms with loan-to-value under 95% : 1.20 percent annual MIP
  • 30-year loan terms with loan-to-value over 95% : 1.25 percent annual MIP
15-year fixed rate mortgages with LTVs of 78% or less pay no annual MIP. Mortgages made for $625,500 or more are subject to an additional 0.25 percent annual mortgage insurance fee. A Los Angeles, California homeowner, therefore, using the FHA’s full $729,750 local loan limit for a low-downpayment, 30-year fixed rate mortgage will pay annual mortgage insurance premium of 1.50% to the FHA, or $912 per month. Note that mortgage insurance payments are included in the FHA’s Net Tangible Benefit requirement. You must lower your monthly payment by at 5 percent to qualify for the FHA Streamline Refinance.