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Find Your LenderResources » FHA Insurance Premiums and UFMIP
The current up front mortgage insurance premiums (UFMIP) as well as monthly premiums for FHA loans are no longer based on a risk model. The risk model affected the amount of upfront mortgage insurance premiums as well as monthly premiums based on the borrower's credit profile. As of October 1st, 2008 and until September 30th, 2009, the following FHA mortgage insurance premiums will be in effect. The upfront mortgage insurance premium (UFMIP) will be as follows:
Purchases and refinances: 1.75%.
Streamline refinances: 1.50%
FHAsecure: 3.0%.
The monthly mortgage insurance premiums will be as follows:
Purchase Transactions, Full-Qualifying Refinances, and Streamline Refinances:
30 Year Mortgages:
loan to value <95 = 50 basis points
loan to value >=95 = 55 basis points
15 Year Mortgages:
loan to value <95 = None
loan to value >=95 = 25 basis points
FHASecure (delinquent loans):
loan to value <95 = 50 basis points
loan to value >=95 = 55 basis points
For reference: Loan to value is the ratio of the loan amount to the property value or purchase price, whichever is less. For example, a loan amount of $150,000 on a $200,000 home purchase would be 75% loan to value ($150,000 / $200,000).
You can calculate the upfront mortgage insurance premium (UFMIP) by multiplying the percentage of UFMIP by the loan amount. According to the current FHA fees, a FHA purchase loan would require 1.75% UFMIP. On a $250,000 loan amount you multiply 1.75% (.0175) by the loan amount (.0175 x $250,000). The UFMIP equals $4375.00 in this example. Remember, the UFMIP is usually included in the loan and is not a cost that is paid in cash or out of pocket up front.
More information on changes to the mortgage insurance costs, both upfront and monthly, will be released by HUD in the near future. If you need assistance with an FHA loan and are looking for the lowest interest rates and fees available, contact a BeatMyBroker.com mortgage professional today
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