Changes to FHA Annual & Monthly Mortgage Insurance Premiums
I just received an announcement that Congress passed H.R. 5981 which will give FHA the authority to change their annual and monthly mortgage insurance premiums. The bill passed very quickly and the changes that are going to take place will be implemented on September 7th with all new case numbers pulled on and after that date.
Please take note that the September 7th date correlates to pulling a FHA case number, not contract dates.
The changes are as follows: FHA will be decreasing the Upfront Mortgage Insurance Premium from 2.25% to 1.00%. They will also be increasing their monthly mortgage insurance premium from .50-55% to .85-.90% depending on the combined loan to value.
Let's take a quick look at how this will affect a homebuyer's mortgage. At a $200,000 sales price under the old FHA MIP guidelines, the Upfront Mortgage Insurance Premimum would have been $4,342.00 and the monthly mortgage insurance premium would have been $87.84. Under the new FHA guidelines, the Upfront Mortgage Insurance Premium will be $1,930.00 and the monthly mortgage insurance will be $143.74. Overall, this represents an INCREASED cost to the buyer in the monthly mortgage of $43.00 per month.
If you have buyers on the fence and are waiting to make decisions, send them this information because if their case number is pulled after September 7th, they will be paying a higher monthly payment due to these new changes.
As always, if you have any questions or need a buyer prequalified please feel free to contact me.
Tammi Lewis
Senior Loan Consultant
1st Mariner Mortgage
Cell#: (410)725-9451
Fax #: (443)296-9132
Buying or Selling a home contact Kim Darwaza of RE/MAX Allegiance at 703-856-2254. For additional information on the Northern Virginia Real Estate Market and to Search the MLS please visit
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