FHA Mortgage Insurance Premium Changes

April 5th marks the day that the government is increasing the FHA upfront mortgage insurance premium to 2.25%.   

For an average $150,000 loan, this means another $750 for the mortgage insurance premium!

Additionally, we’ve learned that now FHA has a legislative change pending in Congress that would provide FHA with the authority to increase the annual premium to as high as 1.55%.  This rate will be based on your credit score, so that is another great reason to work on improving your score today.

Once enacted, FHA has said that they will lower the upfront premium to approximately 1% and increase the annual premium to about .9%. 

The estimated timeline for the change in the annual premium is set to be passed in the next 3-6 months and implemented later this year.  Keep on the lookout for more information regarding this ever-changing plan. 

 Post contributed by Shane Siniard with WR Starkey Mortgage

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