|
FHA Lowers Mortgage Insurance Premiums Effective January 26th 2015
The Federal Housing Administration (FHA), a government insurer of home loans,
cut 50 basis points (0.50%) from the annual mortgage insurance premium for FHA
backed loans with terms greater than 15 years. For most FHA loans this will
reduce the annual premium from 1.35 percent of the loan balance to 0.85 percent
for case numbers assigned on or after January 26, 2015.
This Mortgagee
Letter 2015-01 includes a table which shows the current and new
annual MIP rates by amortization term, base loan amount, and loan-to-value
ratio.
The following table shows the
existing and the new annual MIP rates by amortization term, base loan amount and
Loan to Value (LTV) ratio.
All New MIP amounts set forth in
this table are effective for case numbers assigned on or after January 26, 2015.
|
Term > 15 Years |
|
Base Loan
Amt. |
LTV
|
Previous
MIP |
New MIP
|
|
≤
$625,500 |
≤ 95.00%
|
130 bps
|
80 bps
|
|
≤
$625,500 |
> 95.00%
|
135 bps
|
85 bps
|
|
>
$625,500 |
≤ 95.00%
|
150 bps
|
100 bps
|
|
>
$625,500 |
> 95.00%
|
155 bps
|
105 bps
|
|
|
Term ≤ 15
Years |
|
|
≤
$625,500 |
≤ 90.00%
|
45 bps
|
45 bps
|
|
≤
$625,500 |
> 90.00%
|
70 bps
|
70 bps
|
|
>
$625,500 |
≤ 78.00%
|
45 bps
|
45 bps
|
|
>
$625,500 |
78.01%
-90.00% |
70 bps
|
70 bps
|
|
>
$625,500 |
> 90.00%
|
95 bps
|
95 bps
|
For the typical FHA applicant in Collin County Texas with average loan amount of
$250,000, the reduction in premiums means a savings of about $104 on their
monthly payment.
Case Cancellation
To allow
mortgagees to obtain the reduced annual MIP rates contained in this ML for loans
in process with active FHA Case Numbers, FHA will temporarily approve
cancellation requests for active FHA Case Numbers within 30 days of the
effective date of this ML.
For more information please see
HUD web page at
Mortgagee
Letter 2015-01
This article can also be found in
http://www.texasfivestarrealty.com/FHA_Lowered_MIP_Jnauray26_2015.asp
Contact Bahman Davani at: http://www.texasfivestarrealty.com/Contactus.asp |
