Changes are occurring to the FHA Mortgage Insurance Premium (MIP) effective April 1, 2012.  Mortgage Insurance Premiums provide insurance or protection to the lender in the event the homeowner becomes deficient on the loan.  There is an upfront MIP that is generally financed into the loan amount, but can be added to the closing costs.  Right now, the upfront mortgage insurance premium is equal to 1 percent of the loan amount.  On April 1st, that percentage will increase to 1.75% of the loan amount.  There is also an annual mortgage insurance premium that is paid in monthly installments.  The annual MIP is 1.15% and will increase to 1.25%. 

 To give you an example of how these changes will impact you, if you are purchasing a home priced at $300,000, the amount to be financed before April 1stwould be $2,895 (1% of the loan amount) and $271.19 monthly (1.15%).  On April 1st, the figures on a $300,000 sales price would be $5,066.25 financed into the loan (1.75% of the loan amount) and $296.96 monthly (1.25%).  These changes are effective for all FHA case numbers ordered on April 1stor later.  You need a property address to order a case number, but the loan does not have to close by that date.  To find out more about these changes, contact your loan officer or email Teesie Howell, with Presidential Mortgage Group, at