FHA will increase its annual mortgage insurance premium (MIP) for most new mortgages by 10 basis points or by 0.10 percent. These premium increases exclude certain streamline refinance transactions.
FHA will also require most FHA borrowers to continue paying annual premiums for the life of their mortgage loan. Commencing in 2001, FHA cancelled required MIP on loans when the outstanding principal balance reached 78 percent of the original principal balance.
The increase of the annual MIP is effective for case numbers assigned on or after April 1, 2013. The annual premium change (life of loan) will become effective for all mortgages with FHA case numbers assigned on or after June 3, 2013. We will keep you updated as we hear more information regarding these changes.
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