In Mortgagee Letter 2010-28, FHA announced it is increasing its annual premium and lowering its upfront premium.
Reports NAR,
“For all traditional purchase and refinance products the upfront premium is 1%. On 30-year loans with a 95% loan-to-value (LTV) ratio or lower the annual premium is .85%. On the 30-year loans with an LTV lower than 95% the premium is .90%. For all reverse mortgages, known as the Home Equity Conversion Mortgage, the upfront premium is 2% and the annual premium is 1.25%.”
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