Upfront Premium, Late, and Interest Charges

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Upfront Mortgage Insurance Premium (MIP) Charge

The upfront MIP charge depends on the date an FHA case number was assigned to the loan.

• On or after January 1, 2009: See Mortgagee Letter 2008-40 and attachment for refinance cases only.

• On or after October 1, 2008: See Mortgagee Letter 2008-22. For HOPE for Homeowners loans, see Mortgagee Letter 2008-29 and attachments.

• Between July 14, 2008 and September 30, 2008: See Mortgagee Letter 2008-16.

• Before July 14, 2008: Upfront MIP is charged at one and one-half percent (1.5%) of the mortgage amount.

MIP Calculator on the FHA Connection's Case Processing menu can be used to get an estimate of the upfront MIP amount (and annual MIP amount).

Late Charge

A one-time late charge of four percent (4%) is assessed on an upfront MIP payment received more than 10 calendar days after the mortgage closing or disbursement date, whichever is later.

Interest Charge

A one-time interest charge is assessed on an upfront MIP payment received more than 30 calendar days after the mortgage closing or disbursement date, whichever is later. The interest rate is the U.S. Department of the Treasury's Current Value of Funds Rate in effect when the upfront MIP payment is received.