Starting effective June 3rd 2013 there are major changes occuring to the monthly mortgage insurance premiums for FHA loans.
A). The Monthly Mortgage Insurance Premium (MIP) on 15yr and 30yr mortgage loans above 90% Loan To Value (LTV) will require the monthly MIP be paid for the LIFE OF THE LOAN as opposed to having an option to be removed after a certain amount of time and LTV combination.
B). For any loans at 90% LTV or under, the minimum time frame for MIP assessment will change to 11 years. Meaning, you'll have to keep that mortgage insurance premium for a minimum of 11 years if you are planning on putting at least 10% down or are streamline refinancing your FHA loan with at least 10% equity. You would need to continue to pay the monthly mortgage insurance premium for the 11 years unless you re-finance into a conventional loan out of the FHA loan.
C). Also, for 15yr term mortgage <=78% LTV the new monthly MIP will be 45 bps as opposed to 0 currently and up until 6-2-2013.
You should make sure that if you are in contract to purchase a home or are considering a refinance, that your loan officer has the FHA Case # assigned for your new transaction. This must be done by 6-2-2013. Any FHA Case #'s assigned after 6-3-2013 will be required to follow the above requirements.
If you need to find out whether the above changes
affect your transaction, feel free to call
Casey Moseman @ 702-271-1274