FHA has informed the lending industry of their intent to make changes to the Mortgage Insurance Premiums charged to borrowers when using FHA financing. Note, the effective date for the changes to the upfront and annual premiums will be September 7, 2010.
Please see attached letter from Commissioner Stevens regarding his intention to decrease the UFMIP from 2.25% to 1.0% and increase the monthly Mortgage Insurance from 0.55% to between .80%-.90% annually.
The net-affect to a borrower who is requesting maximum financing from FHA is an increase in their monthly payment of approximately $22 per $100,000 borrowed at today’s interest rates.
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