Fha Reducing Annual Mortgage Insurance Starting 1/27/2017

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
#1
Today, January 9th 2017 HUD released a statement regarding any case numbers assigned after January 27th, 2017 they will be reducing the annual mortgage insurance. They are not only reducing it for the 15 year amortized loans but also 30 year fixed as well.

The table below references the new changes in the MIP:

Terms Greater Than 15 Years:
≤ 625,500.00 Loan Amount, LTV ≤ 95.00%. Previous MIP: 80 bps, New MIP: 55 bps
≤ 625,500.00 Loan Amount, LTV > 95.00%. Previous MIP: 85 bps, New MIP: 60 bps
> 625,500.00 Loan Amount, LTV ≤ 95.00%. Previous MIP: 100 bps, New MIP: 55 bps
> 625,500.00 Loan Amount, LTV > 95.00%. Previous MIP: 105 bps, New MIP: 60 bps

Terms Less Than or Equal To 15 Years:
≤ 625,500.00 Loan Amount, LTV ≤ 90.00%. Previous MIP: 45 bps, New MIP: 25 bps
≤ 625,500.00 Loan Amount, LTV > 90.00%. Previous MIP: 70 bps, New MIP: 50 bps
> 625,500.00 Loan Amount, LTV ≤ 78.00%. Previous MIP: 45 bps, New MIP: 25 bps
> 625,500.00 Loan Amount, LTV > 95.00%. Previous MIP: 105 bps, New MIP: 60 bps
> 625,500.00 Loan Amount, LTV 78.01% - 90%. Previous MIP: 70 bps, New MIP: 25 bps
> 625,500.00 Loan Amount, LTV > 90%. Previous MIP: 95 bps, New MIP: 50 bps

I have bolded some of the most popular types of FHA transactions where the change will be seen the most. You can also see that some of the higher balance loan MIP’s have changed dramatically as well. This will hopefully help some of the future homebuyers that have seen a recent rate hike feel a little more at ease when attempting to purchase a new home.

Please feel free to give us a call at our direct line here at LoanSafe.org at 800-779-4547 or reach myself directly at Erik.Sandstrom@BancHomeLoans.com
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
#2
Correction to the above post:
The new MIP changes will be in effect for loans with closing dates after the 27th of January. If you already have a case number assigned and are closing after January 27th, you should be able to obtain the new MIP.