This site  The Web

Print Friendly Version (pdf) Up-Front Mortgage Insurance Premium (UFMIP) UFMIP is a one-time premium paid to FHA.  FHA permits UFMIP to be entirely financed or entirely paid in cash at settlement.  UFMIP is non-refundable (ML2005-03) except when refinancing to another FHA loan, AND the refinance occurs within 36 months of the closing of the existing FHA insured mortgage.  This is referred to as 'MIP Netting'.  During that same year, 2005, FHA also required UFMIP on condominium and 203k transactions (ML2005-38). UFMIP can be financed or paid-in-cash at closing.  Financed UFMIP is rounded down to the nearest whole dollar amount.  Case Number Assignments after 10/04/2010 Purchase Money Mortgages = 1.00% Full-Credit Qualifying Refinances = 1.00% All Streamline Refinances = 1.00%  How to calculate UFMIP Multiply the premium percentage by the "base" loan amount.  Example: $200,000 purchase price X 96.5% (maximum mortgage) = $193,000 (base loan amount) X 1.00% (UFMIP) = $1,930.00.  Annual Mortgage Insurance Premium (MMI) The FHA annual mortgage insurance premium shares similarities to Conventional PMI.  Premiums are based on the loan-to-value and mortgage term.  Annual premiums are no longer required after the mortgage reaches 78%, but FHA will not allow a new appraisal.  Also, mortgage insurance must remain in effect for at least 5 years, and the homeowner cannot have been 30-days or more tardy with any mortgage payment in the 12 months preceeding the eligible termination date. FHA mortgage insurance is required on purchase money mortgages (purchases), full-qualifying refinances, and streamline refinances.  Case Number Assignments after 04/18/2011 Loans over 15 Years LTV ≤ 95% = 1.10% LTV > 95% = 1.15% Loans 15 Years or less LTV ≤ 90% = 0.25% LTV > 90% = 0.50% How to calculate Annual Premiums Using the above Example: $200,000 purchase price X 96.5% (maximum mortgage) = $193,000 (base loan amount) X 1.10% (terms over 15 years, less than 5% down) = $2,123.00 (annual premium) divided by 12 months = $176.17 (monthly premium).  More FHA Mortgage Insurance Information FHA Mortgage Insurance Premium History UFMIP Refunds Beginning with FHA mortgages endorsed (closed) on or after December 8, 2004, the Consolidated Appropriations Act of 2005 amended the National Housing Act, to eliminate refunds of the FHA UFMIP except when the borrower refinances to another mortgage to be insured by FHA (FHA-to-FHA refinance).  With the elimination of MIP refunds, the amendment also abbreviated FHA's earned premiums calculation - reducing the number of years FHA borrowers are entitled to a MIP credit.   UFMIP Refund Percentages (for FHA-to-FHA refinances only)                                             Month of Year Year 1 2 3 4 5 6 7 8    9       10      11      12    1 80 78 76 74 72 70 68 66 64 62 60 58 2 56 54 52 50 48 46 44 42 40 38 36 34 3 32 30 28 26 24 22 20 18 16 14 12 10