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FHA upfront MI premium

What is the exact rate for upfront MI premium? For my refinance request, I am getting FHA loan quotes with a 1% MI premium. I thought this is very high like 2-3%, so is there any exception scenarios to get 1% too? or did it went down recently?
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April 08 2011 - Herndon
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Answers (7)

Upfront MI is 1%.  But as the Carl noted, you will want to make sure your lender gets your case number prior to April 18th.  You will also want to check with someone who can compare a conventional loan with private mortgage insurance as those premiums are usually cheaper.  If you go the FHA route, I would wait no longer than Monday or Tuesday to get everything started due to the April 18th change.

Also, you may want to look at taking a slightly higher rate to decrease some of the refinance costs. 
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April 10 2011

FHA mortgage insurance varies by loan term, and by loan-to-value (by the amount of initial equity in the home at time of financing - LTV is equity in reverse. 80% LTV is the same as 20% equity) and,beginning April 18, 2011, the new insurance premiums are as follows:

  • 15-yr loan term, loan-to-value > 90% (10% > equity): 0.50% per year
  • 15-yr loan term, loan-to-value <= 90% (10% <= equity):0.25% per year
  • 30-yr loan term, loan-to-value > 95% (5% > equity): 1.15% per year
  • 30-yr loan term, loan-to-value <= 95% (5% <= equity): 1.10% per year

To calculate your monthly mortgage insurance premium, multiply your starting loan size by your insurance premium, and divide by 12.

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April 10 2011
Depending on your credit and the type of home you are purchasing FHA could be your best option.  FHA is much more flexable with regards to high ratios and low credit scores.   Conventional is a good option if your credit scores are 740 or better.  Mortgage insurance with a conventional loan can vary based on the down payment and scores.  If you are working with a mortgage lender have the do a comparison so that you can make the best choice:)  Good luck.
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April 10 2011
FHA is not the best option with less than 20% down; run away quickly from someone who tries to suggest it is.

conventional loans with PMI have no UFMIP and the monthly premiums are cheaper.
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April 09 2011
FHA is now 1%, it used to be 2.25%.

You should also check out conventional because the mortgage insurance may be less than FHA depending on the loan to value and there is no funding fee.

Comparably, you may be able to prepay the mortgage insurance or a part of it on a split premium which would result in no or reduced mortgage insurance.
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April 09 2011
FHA, still being the best option when purchasing a home with less than 20% down, has recently changed the upfront mortgage insurance premium charge called UFMIP. That loan fee is almost always financed into your loan, but was recently reduced to 1%. In addition to the UFMIP, there is a monthly charge called MMI which as of 04/15/2011 will effectively more than double since last year's rate of .50% making your monthly payment go up on all new FHA 30 year loans. So as you can see, it is a double edged sword. As Carl stated below, better get under contract or you too will pay the new higher cost of financing with a FHA Loan. Coupled with the rising interest rates I would seriously consider it!
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April 09 2011
The upfront MI is currently 1%.......Monthly MI is .90 going to 1.15 April 18th get your case number before then.
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April 08 2011
 
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