THIS POST IS DATE SPECIFIC… note that FHA has changed it’s MIP charges 7 times between 2008 and 2012.
We are leaving this time sensitive data up as a point of reference for people who purchase during that time. Depending on when you closed, the amount of your refund could be different! For specific questions, please contact us at 919-649-5058
Several months ago I shared with you the “newest” Risk Based Pricing for FHA Mortgage Insurance (MIP). Well… that’s changed, again.
With the new Housing Bill, Congress “outlawed” the Risk Based Pricing Model FHA had in place… so now FHA has a NEW PLAN for MIP! Effective October 1, 2008 the MIP will be calculated at this model:
Ø Purchases and credit qualifying refinances: 1.75% upfront.
Ø Streamline refinances: 1.5% upfront
With respect to the upfront premium, there are no differences for mortgage term or LTV.
Purchases, Credit qualifying and Streamline Refinances
1. Greater than 15 year term mortgages
Loan-to-value (LTV) ratio Annual premium
Greater than 95% .55
Less than or equal to 95%: .50
2. 15 year or less term mortgages
Greater than 90% LTV .25
Less than or equal to 90% None