Starting in April, the Up-Front Mortgage Insurance Premium (UFMIP) has been increased to 2.25% of the loan amount, up from 1.75%.  This increase applies to all purchase and refinance transactions, including streamline refinance.  This fee was raised by HUD to help address the budget deficit of the immensily popular FHA loan programs.

While the UPMIP is paid at closing, it may be financed into the loan amount so that it does not add quite the increase in closing costs to the borrower.  For example:  If the original loan amount is $100,000, the new total loan amount after the included UFMIP would be $102,250 and could be financed for 30 years or 15 years, depending on the desired FHA Loan program.

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