FHA Mortgage Insurance Premiums

Effective April 1, 2013 and June 3, 2013 The charts below illustrate the 10 basis points (bps) increase in the Annual Mortgage Insurance Premiums, new duration of annual MIP and new MIP rates for loans under 78% that are amortized for 15 years or less. Upfront premiums will not change with this update.

The annual MIP on all forward mortgages increases, except single family forward streamline refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009; the rate for those streamline transactions remains at the current level.

The following are effective for all mortgages with FHA case numbers assigned on or after June 3, 2013:

  • Revision to the period for assessing the annual MIP;
  • Removal of the exemption from the annual MIP for loans with terms of 15 years or less and LTVs of less than or equal to 78 percent at origination;
  • Increase in the annual MIP for mortgages with terms less than or equal to 15 years and LTV ratios less than or equal to 78 percent at origination.

The table below shows the previous and the new duration of annual MIP by amortization term and LTV ratio at origination:

TERM LTV (%) PREVIOUS NEW
≤ 15 yrs ≤ 78 No annual MIP 11 years
≤ 15 yrs > 78 – 90.00 Cancelled at 78% LTV 11 years
≤ 15 yrs > 90.00 Cancelled at 78% LTV Loan term
> 15 yrs ≤ 78 5 years 11 years
> 15 yrs > 78 – 90.00 Cancelled at 78% LTV & 5 yrs 11 years
> 15 yrs > 90.00 Cancelled at 78% LTV & 5 yrs Loan term

Upfront Premiums: Upfront premiums (UFMIP) will stay the same.

Annual Premiums:

New annual MIP rates by amortization term and LTV ratio. All MIPs in this table are effective for case numbers assigned on or after April 1, 2013 for loan amounts under $625,000 (15 year and 78% or less LTV MIP changes are effective June 3, 2013): For loan amounts larger than $625,000, view the full mortgagee letter below.

LTV Ratio Annual Premium for over 15 Years and up to 30 Years LTV Ratio Annual Premium for Loans 15 Years and Under
95.00% and Under 1.30% 78% and under 0.45%
95.01% and Over 1.35% 90.00% to 78.01% 0.45%
    90.01% and Over 0.70%

Read the full FHA Mortgagee Letter (pdf)

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Effective April 9, 2012 The charts below illustrate the 10 basis points (bps) increase in the Annual Mortgage Insurance Premiums (loan amounts under $625,000) and a 75 basis points (bps) increase to the Upfront Mortgage Insurance Premium (UFMIP). It is anticipated that these marginal increases are affordable for nearly all homebuyers who would qualify for a new mortgage loan and will significantly strengthen the capital position of the MMIF.

Upfront Premiums: Upfront premiums (UFMIP) will increase by 0.75 percent.

  • Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75 percent
  • Streamline Refinances (all types) = 1.75 percent (unless refinancing an FHA loan endorsed before May 31, 2009)
  • Home Equity Conversion Mortgages = 2.00 percent

Annual Premiums:  FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above $625,000.
For FHA traditional purchase and refinance products, the annual premium, shown in percentage below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule for loan amounts under $625,000: For loan amounts larger than $625,000, view the full mortgagee letter below.

LTV Ratio Annual Premium for over 15 Years and up to 30 Years LTV Ratio Annual Premium for Loans 15 Years and Under
95.00% and Under 1.20% 78% and under 0.00%
95.01% and Over 1.25% 90.00% to 78.01% 0.35%
    90.01% and Over 0.60%

How long will I have monthly FHA mortgage insurance? Years will be determined when the loan balance equals 78% of the initial sale price or appraised value, which ever is lower, provided the mortgagor has paid the annual mortgageinsurance premium for at least 5 years.

Read the full FHA Mortgagee Letter (pdf)