Showing posts with label FHA Mortgage Insurance Premiums. Show all posts
Showing posts with label FHA Mortgage Insurance Premiums. Show all posts
Friday, August 20, 2010
New FHA MIP & UFMIP changes date changed.
HUD has announced that the changes reported in the previous post will now take effect as of 10/4/2010.
Tuesday, April 27, 2010
As FHA tightens requirements, Private mortgage insurance companies return to market
Beginning this month, down payment requirements on FHA-insured loans have been increased. Although borrowers with credit scores of 580 or above will still be able to make the traditional 3.5% down payment, those with lower scores will need 10% down.
In addition, the upfront mortgage insurance premium has been raised from 1.75% to 2.25%. The premium can be financed as part of the mortgage.
FHA has asked Congress for authority to increase the maximum monthly insurance fee from the current 0.5% level. The agency is seeking permission to hike the monthly charge to 1.55%, but has said it needs to raise it to only 0.9% at this time.
FHA is reducing permissible seller concessions from 6% of the loan amount to 3%. This change conforms to industry standards, and means that even if a seller were to agree to pay all of the borrower's closing costs, the borrower could count only that portion equal to up to 3% of the loan amount as if it were his own money.
Meanwhile, several private mortgage insurers have returned to backing 5% down payment loans to borrowers anywhere in the country.
Today, while FHA loans are generally considered to be the less expensive alternative, that's not always the case. Savvy borrowers would be wise to consider both before jumping to a decision.
Generally, PMI pricing is more affordable for borrowers making a down payment of 10% or more.
Source: Lew Sichelman, United Feature Syndicate 4/25/2010
In addition, the upfront mortgage insurance premium has been raised from 1.75% to 2.25%. The premium can be financed as part of the mortgage.
FHA has asked Congress for authority to increase the maximum monthly insurance fee from the current 0.5% level. The agency is seeking permission to hike the monthly charge to 1.55%, but has said it needs to raise it to only 0.9% at this time.
FHA is reducing permissible seller concessions from 6% of the loan amount to 3%. This change conforms to industry standards, and means that even if a seller were to agree to pay all of the borrower's closing costs, the borrower could count only that portion equal to up to 3% of the loan amount as if it were his own money.
Meanwhile, several private mortgage insurers have returned to backing 5% down payment loans to borrowers anywhere in the country.
Today, while FHA loans are generally considered to be the less expensive alternative, that's not always the case. Savvy borrowers would be wise to consider both before jumping to a decision.
Generally, PMI pricing is more affordable for borrowers making a down payment of 10% or more.
Source: Lew Sichelman, United Feature Syndicate 4/25/2010
Monday, February 8, 2010
FHA Mortgage Insurance Premiums to increase April 2010
Up Front Mortgage Insurance Premium (UFMIP) will be increased form 1.75% to 2.25%. The change will occur April 5th, 2010. This applies to purchase money and refinance transactions.
The FHA will also request legislative authority to further increase the maximum annual MIP they can charge. If they are granted the authority, they will shift some of the raise from the up-front MIP to the annual MIP.
The FHA will also request legislative authority to further increase the maximum annual MIP they can charge. If they are granted the authority, they will shift some of the raise from the up-front MIP to the annual MIP.
Tuesday, December 29, 2009
FHA Mortgage Insurance Premiums
Up Front Mortgage Insurance Premium (UFMIP):
Purchase Money Mortgages and Full Qualifying Refinances are 1.75%.
Monthly Premium:
For loans over 15 years, the monthly premium is .50 for LTV's of 95% or less, and .55 for LTV's greater than 95%. For 15 year or less loans with 90% LTV or less, there is no monthly premium, over 90% LTV carries a .25 monthly premium.
Cancellation of Monthly Premium:
For mortgages with terms greater than 15 years, the annual MIP will be cancelled when the LTV reaches 78% based on the original value of the loan, provided the borrower has paid the annual MIP for at least five years.
For mortgages with terms of 15 years of less, the annual MIP will be cancelled when the LTV reaches 78%.
Purchase Money Mortgages and Full Qualifying Refinances are 1.75%.
Monthly Premium:
For loans over 15 years, the monthly premium is .50 for LTV's of 95% or less, and .55 for LTV's greater than 95%. For 15 year or less loans with 90% LTV or less, there is no monthly premium, over 90% LTV carries a .25 monthly premium.
Cancellation of Monthly Premium:
For mortgages with terms greater than 15 years, the annual MIP will be cancelled when the LTV reaches 78% based on the original value of the loan, provided the borrower has paid the annual MIP for at least five years.
For mortgages with terms of 15 years of less, the annual MIP will be cancelled when the LTV reaches 78%.
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