Effective with case numbers assigned on or after April 18, 2011, FHA will increase the annual MIP by 25 basis points.
For example:
Currently - If you have a loan to value above 95% on loan term greater than 15 years, the annual premium is 90 basis points (this is figured off your loan amount.) This will be going up to 115 basis points.
The Upfront Mortgage Insurance Premium will remain the same. The increase in annual MIP applies to all mortgages except for Section 238(c) Military Impact areas in Georgia and New York - as designated by HUD.
If you are thinking of buying and planning on using the befits associated with an FHA loan, now is the time to get your contract in place!
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