In April 2013, the FHA announced a couple of changes to the loan, including a higher MIP (annual mortgage insurance premium) and mortgage insurance payment for the duration of some FHA home loans.
According to the FHA official site, "FHA will increase its annual mortgage insurance premium (MIP) for most new mortgages by 10 basis points or by 0.10 percent. FHA will increase premiums on jumbo mortgages ($625,500 or larger) by 5 basis points or 0.05 percent, to the maximum authorized annual mortgage insurance premium."
The site also states, "These premium increases exclude certain streamline refinance transactions. FHA will also require most FHA borrowers to continue paying annual premiums for the life of their mortgage loan."
Before selecting your loan terms, check the FHA website to find out the nitty gritty on what an increased MIP could mean for you.
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