New FHA MIP Fee Changes Took Effect October 4th

Up Front MIP will decrease from 2.25% to 1%. Annual MIP will increase from .50/.55 to .85/.90 for terms greater than 15 yrs. What this means is that home buyers will pay less to get into a home, but will pay a higher monthly payment under the new amounts. FHA will make the premium fee changes on all new case numbers effective October 4, 2010.