Dated: 02/14/2015

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  • Ever wonder about MIP or Mortgage Insurance Premium? When will you stop paying it or will it ever go away?

New FHA mortgages and refinances of an existing FHA mortgage which was endorsed by the FHA on, or after, June 1, 2009 are subject to an upfront mortgage insurance premium (UFMIP) of 1.75% and an annual mortgage insurance premium (MIP) of up to 1.05%. Upfront and annual mortgage insurance premiums for FHA loans which replace existing FHA which were endorsed by the FHA prior to June 1, 2009 via the FHA's streamline refinance program pay 0.01% and 0.55%, respectively.

The FHA MIP schedule was most recently updated January 2015. The current schedule is shown below:

15-year loan term, LTV (Loan To Value) up to 90 percent : 0.45% annually

15-year loan term, LTV greater than 90 percent : 0.70% annually

30-year loan term, LTV less than, or equal to, 95 percent : 0.80% annually

30-year loan term, LTV greater than 95 percent : 0.85% annually.

Loans which exceed $625,500 are subject to an MIP surcharge. Loan terms of 15 years or fewer are typically assessed an extra 0.25 percentage points of annual MIP. Loan terms of more than 15 years, including the 30-year fixed rate mortgage, are subject to a 0.20 percentage point surcharge.

FHA MIP will self-cancel for some FHA-insured homeowners, and not others.FHA mortgage insurance premiums will not cancel for loans with a starting LTV exceeding 90%FHA mortgage insurance premiums must be paid for a minimum of 11 years for loans with a starting LTV of 90% or less. 

Contact your lender for a more detailed explanation.

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Florida Rodriguez

We just purchased our first home today and I cannot thank Florida enough for all her help. She is very professional and very thorough in assisting us since day 1. She always make herself available and....

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