As a result of the passing of HR-3221 into law in late July, yesterday FHA announced that they were changing the way they charge for Up Front Mortgage Insurance Premiums.

This is the 2nd time this year that FHA has changed the way they calculate UFMIP and it is effective for all FHA loans starting October 1, 2008.

The new Up Front Mortgage Premiums For FHA Loans Are:
  • Full Documentation Purchase or Refinance = 1.75%
  • Streamline Refinance = 1.5%
  • FHA Secure = 3%
In addition to the UFMIP changes, there are also changes to the amount of monthly mortgage insurance that you must pay with an FHA loan now.

The New Monthly Mortgage Insurance Premiums Are:

  • 30 yr mtg. -  LTV > 95% = .55%
  • 30 yr mtg. -  LTV < 95% = .50%
  • 15 yr mtg. -  LTV > 90% = .25%
  • 15 yr mtg. -  LTV < 90% = not required.
  • FHASecure - LTV > 95% = .55%
  • FHASecure - LTV < 95% = .50%
These mortgage insurance premium numbers are good through September 30, 2009 -- so look for more changes coming next year!