FHA Raises Annual Premiums
While the Up Front Mortgage Insurance Premiums (UFMIP) remained the same, the monthly payment on an FHA loan will rise again for all case numbers ordered on or after April 18, 2011 with the new higher annual premium. See all the new factors below and how to calculate payments.
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FHA Mortgage Insurance Premiums
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| Loans > 15 years | ||
| UFMIP = 1.00% Annual Premium | ||
| LTV | Through 4/17/2011* | On/After 4/18/2011** |
| ≤ 95.00 % | .85% | 1.10% |
| > 95.00 % | .90% | 1.15% |
| Loans ≤ 15 years | ||
| UFMIP = 1.00% Annual Premium | ||
| LTV | Through 4/17/2011* | On/After 4/18/2011** |
| ≤ 90.00 % | None | .25% |
| > 90.00 % | .25% | .50% |
| *For case numbers assigned on/before April 17, 2011 | ||
| **For case numbers assigned on/after April 18, 2011 | ||
Example:
$150,000 sales price @ 5% interest rate fixed for 30 yrs with a 3.5% down payment (96.5 % LTV)
$150,000 – $5,250 = $144,750 Base Loan Amount
$144,750 x 1% = $1,447 UFMIP
$144,750 + $1,447 = $146,197 Total Loan Amount
$146,197 x 1.10% ÷ 12 = $134.01 Annual Mortgage Insurance (paid monthly)
Monthly Payment Calculation on $146,197 Total Loan Amount
Principal and Interest $ 784.82
Annual Mort Ins 134.01
Taxes (estimate) 200.00
Hazard Ins (estimate) 80.00
Total Monthly Payment $ 1,198.83
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