FHA announced that it is raising Mortgage Insurance Premiums (MIP) for FHA mortgages. These increases will only impact new FHA loans and DO NOT impact existing FHA borrowers.
The The MIP changes can be summarized as follows:
* Upfront MIP increase by 0.75 points to 1.75% from 1.00%. The UFMIP as is the case now can be financed into the mortgage. This change is to be effective from April 1, 2012.
* Effective April 1, 2012 FHA is also increasing its MIP by 10 bps to 1.25% from 1.15% as required by the Temporary Payroll Tax Cut Continuation Act of 2011.