2/29/12

Important FHA Changes Effective April 1, 2012

HUD has announced a change in the UFMIP and annual premium percentage effective with case numbers assigned on or after 4/1/12. The UFMIP will be increased from 1% to 1.75% regardless of the loan term or ltv ratio. The annual mortgage insurance premium will also increase .10%.
The new premium structure will be:

Loan Terms > 15 Years

UFMIP – 1.75%
Monthly - =< 95% - 1.20%
>95% - 1.25%

Loan Terms =< 15 Years

UFMIP – 1.750%
Monthly - =< 78% - none
78.01 – 90% - .35%
> 90% - .60%


EXAMPLE FOR $200,000 BASE LOAN AMOUNT

Current UPMIP = $2,000 After 4/1/12 = $3,500
Current Monthly MIP = $191.67 After 4/1/12 = $208.33

Current Total Payment (at today’s rate of 3.75%) = $1,127.16
Total Payment after 4/1/12 (at same rate) = $1,150.77

In this scenario the total payment is increased by $23.61/mo.

Information provided by Chris Parrish of F@M Bank
cparrish@fmbanktexas.com / 214.780.2021 Office