The Monica Foster Team
Menu
  • Home
  • Buyers
    • Close
    • Properties
      • Search For Homes
      • Request Home Search
      • 24/7 Virtual Open Houses
      • Our Listings
      • New Listings
      • Home Walkthroughs
    • Buyers
      • Buyer Representation
      • Luxury Home Buying
      • New Home Construction
      • Virtual Buying
      • Market Snapshot
      • American Dream TV
    •  
      • Cities / Neighborhoods
      • Schools
      • Relocation
      • Short Sales & Foreclosures
      • Trusted Lenders
    • Buyer Resources
      • Buyer Videos
      • Millennial Home Owner Guide
      • Community & School Reports
      • Area School Districts Facts
      • When Choosing a Home
      • Buyer Negotiation Process
      • Housing Programs
    •  
      • Buying a Home Guide
      • Property Disclosures
      • Ready to Buy
      • Ready to Move
      • Final Walkthrough Checklist
      • Homestead Exemption
      • Real Estate Flow Chart
    •  
      • Title Policy Rates
      • Contract to Close Process
      • Who Pays What?
      • Owning a Home
      • Mortgages
      • Mortgage Rates
      • Property Tax Records
    • Close
  • Sellers
    • Close
    • Sellers
      • Selling Your Home
      • Virtual Selling
      • Luxury Home Marketing
      • Market Snapshot
      • American Dream TV
    •  
      • Value My Property
      • Easy Home Offer
      • Home Offer Consultant
      • Short Sale
      • Expired Listing
      • Relocation Company
    •  
      • Selecting Your Agent
      • Professional Photos
      • 3-D Tours
      • Home Staging
      • Virtual Staging
    • Seller Resources
      • Seller Videos
      • Ready To Sell
      • Priced To Sell
    •  
      • Selling Your Home Guide
      • Ready To Move
      • Contract to Closing
    •  
      • Who Pays What?
      • Remodeling
      • Real Estate Flow Chart
    • Close
  • Raving Fans
  • About
  • Contact
    • Close
    • Social
      • Facebook
      • Twitter
      • Pinterest
    •  
      • Social Wall
      • Blog
      • YouTube
    • Help
      • Ask Us
      • Refer Us
      • Join Us
    • Close

Realty Blog By Monica

New Mortgage Insurance rules for FHA loans are now in effect

0
June 3, 2013 - Home Buying, Insurance
MIP/PMI Changes As of June 3, 2013, new rules for FHA Mortgages have gone into effect concerning Mortgage Insurance (PMI/MIP).  These changes include:1: revision to the period for assessing the annual MIP;

2: removal of the exemption from the annual MIP for loans with terms of 15 years or less and LTVs of less than or equal to 78 percent of origination;

3: increase in the annual MIP for mortgages with terms less than or equal to 15 years and LTV ratios less than or equal to 78 percent at origination.

Revision to the Period for Assessing Annual MIP The table below shows the previous and the new duration of annual MIP by amortization term and LTV ratio at origination.

Term LTV (%) Previous New
≤ 15 yrs ≤ 78 No annual MIP 11 years
≤ 15 yrs > 78 – 90.00 Cancelled at 78% LTV 11 years
≤ 15 yrs > 90.00 Cancelled at 78% LTV Loan term
> 15 yrs ≤ 78 5 years 11 years
> 15 yrs > 78 – 90.00 Cancelled at 78% LTV & 5 yrs 11 years
> 15 yrs > 90.00 Cancelled at 78% LTV & 5 years Loan term
Increase to Annual Mortgage Insurance Premium The first table shows the previous and the new annual MIP rates by amortization term, base loan amount and LTV ratio. All MIPs in this table are effective for case numbers assigned on or after April 1, 2013.

Term > 15 Years
Base Loan Amt. LTV Previous MIP New MIP
≤ $625,500 ≤ 95.00% 120 bps 130 bps
≤ $625,500 > 95.00% 125 bps 135 bps
> $625,500 ≤ 95.00% 145 bps 150 bps
> $625,500 > 95.00% 150 bps 155 bps
Term ≤ 15 Years
≤ $625,500 78.01% – 90.00% 35 bps 45 bps
≤ $625,500 > 90.00% 60 bps 70 bps
> $625,500 78.01% – 90.00% 60 bps 70 bps
> $625,500 > 90.00% 85 bps 95 bps

The second table shows the previous and the new effective annual MIP rates for loans with an LTV of less than or equal to 78 percent and with terms of up to 15 years. The new annual MIP for these loans is effective for case numbers assigned on or after June 3, 2013.

Term ≤ 15 Years
Base Loan Amt. LTV Previous MIP New MIP
Any Amount ≤ 78.00% 0 bps 45 bps
Exceptions to MIP Duration Changes The changes to the duration of the annual MIP are effective for all Single Family FHA programs for which FHA charges an annual MIP except:1: Title I

2: Home Equity Conversion Mortgages (HECM)

Monica Foster June 3, 2013
Tags:   FHAHome BuyingMIPMortgage InsurancePMIReal Estate

RELATED POSTS

NO COMMENTS

Leave a comment Cancel reply

Your email is never published or shared.

SubscribeSubscribe to Blog

Recent Posts

  • Owning a Home Is Still More Affordable Than Renting One
  • Should I Wait for Lower Mortgage Interest Rates?
  • How to Make the Dream of Homeownership a Reality This Year
  • Things to Avoid after Applying for a Mortgage [INFOGRAPHIC]
  • Why Right Now May Be the Time to Sell Your House

Categories

  • Credit
  • Curb Appeal
  • Decor
  • Financing
  • General Information
  • Green Living
  • Home Buying
  • Home Inspections
  • Home Ownership
  • Home Selling
  • Home Staging
  • Home Walkthrough
  • Insurance
  • Lifestyle
  • Local Area
  • Market Conditions
  • Marketing
  • Mortgage
  • Moving
  • New Construction
  • New Listings
  • News
  • Parks and Recreation
  • Property Taxes
  • Quality of Life
  • Remodeling/Home Improvement
  • Rent vs. Buy
  • Schools
  • Sold Listings

Archives

Our Social Networks

Our Social Networks

Brokered by eXpRealty

Certified Residential Specialist
Accredited Buyer Representative
Certified New Home Specialist
Accredited Staging Professsional
Certified Luxury Home Marketing Specialist
Seller Representative Specialist

Monica M. Foster

Monica M. Foster
The Monica Foster Team

Houston – Clear Lake – Seabrook
League City – Friendswood
Pearland – Galveston

Main: 346.202.7307

Contact Us

© 2020 Realty By Monica, LLC  • 

Terms of Use  •  Privacy Policy
Texas Real Estate Commission Information About Brokerage Services
Texas Real Estate Commission Consumer Notice