March 7th, 2012 5:00 PM by BMIC Mortgage, Inc.
MAJOR FHA CHANGES TO STREAMLINES AND NEW LOANS
President Obama Announces FHA fee reduction
Yesterday, March 06, 2012 President Obama indicated the FHA will be reducing fees for FHA refinances to help home owners who have been current on their loans. The followng highlights the VERY POSITIVE CHANGES:
Streamline Refinances for loans endorsed on or before May 31, 2009
Up front mortgage insurance Premium is reduced to 0.01% (ONE basis point)
Annual Mortgage Insurance Premium will be 0.55% regardless of base loan amount.
Now the BAD NEWS
Up Front Mortgage Insurance Premiums increase to 1.75% - For case numbers assigned on or after April 9, 2012, for ALL single family forward mortgages the new UFMIP will be increased to 1.75% from 1.00% regardless of amortization or LTV.Annual Mortgage Insurance Premiums increased to 1.25% - For case numbers assigned on or after April 9, 2012, for ALL single family forward mortgages the new MIP will be increased to 1.25% from 1.15% regardless of amortization or LTV.