Unfortunately Mortgage consumers are again, having to pay the price of the recent economic crisis. As part of ongoing efforts to strengthen the FHA capital reserves, and to help push private money back into mortgages, the FHA came out with a new premium structure for FHA-insured mortgage loans increasing its annual mortgage insurance premium (MIP) by a quarter of a percentage point (.25) on all 30- and 15-year loans starting in mid-April. (The upfront MIP will remain unchanged at 1.0 percent.) The increase adds $30 to the average borrower's payment and in total is estimated to add $3 billion annually to the FHA's Mutual Mortgage Insurance Fund. It is the second increase since October.
Also HUD has just revised their "Net Tangible Benefit" to consumers when trying to do a streamline refinance. They will now require a total of a 5% reduction of principle, interest, and the annual mortgage insurance premium or refinancing from an Arm to a fixed rate mortgage. Keep in mind the new streamline refinance will require the annual premium listed above.