A history of FHA mortgage insurance premium changes

The FHA has changed their mortgage insurance premium (MIP) rules several times over the past number of years. I couldn’t find any source that had a complete picture of these rate changes, so here’s what I’ve been able to chart from scouring the web.

If you notice any errors or omissions, please let me know in the comments section.

Effective Date Downpayment Upfront MIP Annual MIP
Prior to 7/14/2008 1.5% .50%
7/14/2008 <= 5% 2.25% .55%
> 5% 1.25%-2.25%* .50%-.55%*
4/5/2010 <= 5% 2.25% .55%
> 5% 2.25% .50%
10/4/2010 <= 5% 1% .90%
> 5% 1% .85%
4/18/2011 <= 5% 1% 1.15%
> 5% 1% 1.10%
4/9/2012 <= 5% 1.75% 1.25% / 1.50% for jumbo
> 5% 1.75% 1.20% / 1.45% for jumbo
4/1/2013 <= 5% 1.75% 1.35% / 1.55% for jumbo
> 5% 1.75% 1.30% / 1.50% for jumbo

* Dependent on FICO score

Other key dates:
10/1/2008: Minimum down payment increased from 3% to 3.5%

This post was edited 2/10/2013 to include changes planned for April 2013.

10 thoughts on “A history of FHA mortgage insurance premium changes

  1. Note: For Streamline Refinance transactions that are refinancing FHA loans endorsed on or before 05/31/09, the Annual MIP will be .55%, regardless of the Base Loan Amount.. However, if the new loan has a term of 15 years or less and an LTV of 78.00% or less, 0.00% (exempt).

  2. If I were going to get a mortgage now with a MIP of 1.2% and say next year the MIP drops to 0.5% for new loans would my payment be adjusted or would I still pay my original 1.2%?

  3. Correct Bill and to add to what you have said the upfront MIP under the circumstances you describe (endorsed on or before May 31, 2009) is just .01% for streamline refinances.

  4. Nima, your PMI rate, just like your interest rate remains fixed for the term of the loan unless you refinance or sell your home. The PMI is recalculated on the anniversary of your 1st payment, so that should decrease annually until you reach your 78% LTV and a minimum of 60 payments (on a 30 year mortgage).

  5. I took an FHA loan in May of 2008. I was under the impression that in order to eliminate monthly PMI I would have to either bring the balance below 78% ltv OR pay monthly PMI for 5 years without a missed payment – not both. They are now stating that I have to meet both criteria to eliminate monthly PMI. Is this correct?

  6. FHA’s Actuarial Review contains detailed premium history for pre 2008. You can find it on HUD’s website.

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