Considering an FHA loans to purchase or refinance your home. Contact your
Loan Officer prior to October 4th. We've been talking about, The new hidden price on FHA loans that is equal to a rise in the mortgage interest rate of one-third of one percent. This may make the difference on whether someone will be able to qualify to purchase a home or not purchase a home. It will also make the payment on FHA refinances higher:
.Upfront Premiums
(Case Numbers Issued 10/04/2010 and later):. October 4, 2010, for FHA traditional purchase and refinance products, the upfront premium, shown in basis points below, will be charged for all amortization terms.
.| Mortgage Type | Upfront Premium Requirement |
| Purchase Money Mortgages and Full-CreditQualifying Refinances | 10013PS |
| Streamline Refinances (all types) | 100 BPS |
.Annual Premiums. Effective for FHA loans for which the case number is assigned on or after
. October 4, 2010, FHA will increase the annual premiums collected on a monthly basis. For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length ol'the mortgage according to the following schedule:
.| LTV | Annual Premiums for Loans > 15 Years |
| = or < 95 percent | 85 BPS |
| >95 percent | 90 BPS |
. The annual premium for amortization terms equal to or less than 15 years remains unchanged and is collected according to the following schedule.
.| LTV | Annual Premiums for Loans = or < 15 Years |
| = or < 90 percent | -None‑ |
| >90 percent | 25 131'S |
.Cancellation of FHA's Annual Mortgage Insurance Premiums. The cancellation policies defined in Mortgagee Letters 2000-38 and 2000-46 remain unchanged.
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