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Matt Pollina

Upcomming FHA Changes...Watch out!

Thursday, February 7, 2013 - Article by: Matt Pollina - Smart Mortgage Centers - Message

The FHA recently released another round of changes in Mortgage Letter 2013-04. You can find the letter at Here are the particulars- First, for all case numbers assigned after April 1st 2013 the MIP or Mortgage Insurance Premium will going up again across the board. For loans with a term greater than 15 years and LTV (Loan to Value) equal to or under 95% the MIP will be going from 120bps to 130bps. Over 95% will be 135bps. For terms less than or equal to 15 years the MIP will be between 45bps and 95bps depending on your LTV.

Here are the changes you may not be aware of: For a loan with a term less than or equal to 15 years and a LTV under 78%, there used to be No MIP. On case numbers assigned after June 3rd, 2013 there will now be a MIP of 45bps.

What may be the biggest and most expensive change is: After June 3rd 2013 ALL LOANS WILL NOW HAVE MIP FOR AT LEAST 11 YEARS! That's right, at Least 11 years!

For all terms- Under 90% LTV your MIP duration will be 11 years.

For all terms- Over 90% LTV your MIP duration will be the life of the loan (up to 30 years!)

The FHA announced a while back that they did not want to have such a large percentage of mortgages on their books and have been increasing their MIP and UFMIP ever since. This new round of changes certainly signifies that the FHA means just that.

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