The US Deparment of Housing and Urban Development has announced yet another increase in the mortgage insurance premiums charged for FHA loans.
HUD Mortgagee Letter 2011-10 (PDF) announces that, effective with all FHA case numbers issued on or after April 18, 2011, the annual MI premium that they will be charging will increase by 25 bps on all FHA-insured loans (including ones such as low-LTV 15-year FHA loans, which previously had no annual MI premium at all).
This increase will translate into a monthly payment for FHA borrowers of approximately 21 cents per month for every $1,000 of the loan amount; e.g. on a $350,000 loan, the monthly payment would increase by roughly $73.50/mo.
Borrowers who have identified a specific property that they would like to purchase or refinance can obtain case numbers prior to the 4/18 cutover and take advantage of the current premiums even if they close on their loan after the new premiums take effect; however, in the same mortgagee letter, HUD emphasizes that borrowers must submit an active application in order to obtain a case number.
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