Here we go again. FHA mortgage insurance premiums are changing for the 3rd time this year.
The proposed change was announced last month as part of the Obama Administration’s report to Congress. This change is largely driven by the rapid increase in the use of FHA financing which now is approximately 20% of all home loans currently originated.
The annual MIP (mortgage insurance premium) will increase .25% on all 30 and 15 year loans effective April 18th, 2011. Existing FHA loans are not impacted by the price change, and currently there is no changed planned to the 1% upfront mortgage insurance premium (UFMIP) charged by FHA on all loans.
Below is a chart of the changes effective 4/18.