FHA Fees To Increase April 1st

FHA will increase its annual mortgage insurance premium (MIP) by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums (UFMIP) will also increase by 0.75 percent. Current Rate New Rate Up-front charge 1.00% 1.75% Monthly charge 1.15% 1.25% Examples: CURRENT UP-FRONT RATE: $200,000 price at 96.5% = $194,930 loan amount NEW UP-FRONT RATE: $200,000 price at 96.5% = 196,377.50 loan amount CURRENT MONTHLY RATE: 1.15% on $194,930 = $185/monthly MI NEW MONTHLY RATE: 1.25% on $196,377.50 = $201/monthly MI These increases can mean the difference between qualifying or NOT.