The new, higher one time MIP on FHA loans goes into effect on new case numbers pulled on or after April 5th, 2010. See the comment below as well as the attached mortgagee letter from HUD…
Effective for FHA loans for which the case number is assigned on or after April 5, 2010, FHA will collect an upfront mortgage insurance premium of 2.25 percent. This policy change will increase premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.
Mortgagee letter http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-02ml.pdf
To put this into perspective, the increase shouldn’t affect a borrowers payment too much since it’s financed over 30 years like the following possible scenarios.
Assuming a $150,000 sales price
Old UFMIP 2533
after April 5th 3256
Difference $4/month
Assuming a $250,000 sales price
Old UFMIP 4221
after April 5th 5428
Difference $7/month
Assuming a $350,000 sales price
Old UFMIP 5910
after April 5th 7599
Difference $10/month
*assumption (5.25% rate, rounded #’s for simplicity, 3.5% down payment)
Filed under: News | Tagged: 2.25, 5, April, changes, factor, higher, payment, UFMIP
This doesn’t apply to current FHA loans does it?
Nope. Just new FHA mortgages which are originated after April 5, 2010.