FHA Annual MIP Increases and Cancellations

From Tracy Ottinger | Mortgage Loan Officer

Hello my fellow real estate professionals!

Here is a new update on FHA monthly MIP. In summary we have two big changes happening .

The monthly mortgage insurance rate is increasing. Mortgage insurance is for the LIFE of the loan and no longer drops off when a 78% loan to value is reached. Feel free to call or email with questions.

Please carefully review the charts below regarding the revised FHA annual MIP.  The full ML is attached for your review.

In a nutshell - Annual MIP will be collected on all loans regardless of term and LTV.  Annual MIP duration time periods have been extended and the annual MIP no longer automatically cancelled at 78%, 5 years, etc.

**PLEASE NOTE – The new annual MIP rates apply to all loans EXCEPT single family Streamline Refinances that were endorsed on or before 5/31/09** 

The rate for those transactions remains at the level announced in ML 2012-4 of Annual MIP .55

INCREASE TO ANNUAL MORTGAGE INSURANCE PREMIUM

· Effective for case numbers assigned on or after 4/1/13

EXEMPTION REMOVED ON ANNUAL MIP WITH TERMS OF 15 YEARS OR LESS AND LTV <= 78%

· Effective for case numbers assigned on or after 6/3/13

· Exemption has been rescinded and Annual MIP will be required.

· Refer to chart below. 

REVISION TO THE PERIOD FOR ASSESSING THE ANNUAL MIP

· Effective for case numbers ordered on or after 6/3/13

· Previously, depending on your loan term and LTV, the annual MIP ranged from No annual MIP to the annual MIP being cancelled at 78% and 5 years.

· FHA will now collect the annual MIP for the maximum duration permitted, see chart below.

 

If you have further questions on this, please contact us and we’ll be happy to assist you.

 

Les Bailey & Associates Real Estate Team
Keller Williams Alaska Group
Direct: 907-694-1234
Toll Free: 1-800-784-2912
www.LesBaileyAndAssociates.com