March 4th, 2012 3:56 PM by Sam Kader
FHA has announced that it would increase its annual mortgage insurance premium (MIP) by 0.10 of a percentage point for loans less than $625,500 starting April 1 2012. So for 3.5% down payment, the new annual MIP would increase from 1.15% to 1.25% and 5% down payment, the new annual MIP would increase from 1.10% to 1.20%.
Starting in June 1, the premium for larger loans (greater than $625,500)would rise by 0.35 percentage point, bringing the total premium to 1.5%.
Simultaneously, the agency will also raise the upfront mortgage premium by 0.75 of a percentage point to 1.75% of the loan amount which can be financed into the mortgage. Full mortgagee letter can be read here.
In addition, starting April 1st 2012:
A full mortgagee letter can be read here.