History of FHA Mortgage Insurance Premium Changes

FHA Mortgage InsuranceOver the years, FHA has made increases to the mortgage insurance premiums that it charges to insure the loan.  There are two types of FHA mortgage insurance charged on almost every FHA loan:

  • Up Front Mortgage Insurance Premium (UFMIP) – This is a one time fee charged at time of closing.  This can be paid out of pocket or rolled into the loan amount by financing the premium.
  • Annual Mortgage Insurance Premium (MIP) – This is the monthly fee that is included in the payment each month.  This is based on a percentage of the loan amount (see the chart below) and then divided by the 12 monthly payments made each year.

One of the most important considerations when looking at a FHA Streamline Refinance is to determine what the impact will be of a change in the mortgage insurance premium compared to what you are currently paying.  An increase in the mortgage insurance premium could offset the full benefit of lowering the rate.

**If your FHA loan was closed prior to June of 2009, then you should be eligible for a special reduction in mortgage insurance premiums charged when you do an FHA Streamline Refinance.  Email josh@texasmortgagenews.com for details.

Current DOWNPAYMENT UPFRONT MIP ANNUAL MIP
Since January 2015 1.75% .85%
5% DOWN <= 5% 1.75% .80%
 3.5% DOWN > 5% 1.75%* .85%
EFFECTIVE DATE DOWNPAYMENT UPFRONT MIP ANNUAL MIP
Prior to 7/14/2008 1.5% .50%
7/14/2008 <= 5% 2.25% .55%
> 5% 1.25%-2.25%* .50%-.55%*
4/5/2010 <= 5% 2.25% .55%
> 5% 2.25% .50%
10/4/2010 <= 5% 1% .90%
> 5% 1% .85%
4/18/2011 <= 5% 1% 1.15%
> 5% 1% 1.10%
4/9/2012 <= 5% 1.75% 1.25% / 1.50% for jumbo
> 5% 1.75% 1.20% / 1.45% for jumbo
4/1/2013 <= 5% 1.75% 1.35% / 1.55% for jumbo
> 5% 1.75% 1.30% / 1.50% for jumbo
Current DOWNPAYMENT UPFRONT MIP ANNUAL MIP
Since January 2015 1.75% .85%
5% DOWN <= 5% 1.75% .80%
 3.5% DOWN > 5% 1.75%* .85%

* Dependent on FICO score

Other key dates:
10/1/2008: Minimum down payment increased from 3% to 3.5%

 

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