There are some big changes on the horizon for any new FHA mortgages in Texas and across the country.  Effective October 4th, the upfront premium for that is normally financed into the loan amount is decreasing.  The ongoing monthly texas-home-300x199mortgage insurance or annual premium is increasing to almost double the current premium.  The net effect is that borrowers will be paying significantly more per month.  The details are outlined below.

Upfront Premiums
Effective for FHA loans for which the case number is assigned on or after October 4, 2010, for FHA traditional purchase and refinance products, the upfront premium, shown in basis points below, will be charged for all amortization terms.
Mortgage Type
Upfront Premium Requirement
Purchase Money Mortgages and Full-Credit Qualifying Refinances
100 BPS
Streamline Refinances (all types)
100 BPS
Annual Premiums
Effective for FHA loans for which the case number is assigned on or after October 4, 2010, FHA will increase the annual premiums collected on a monthly basis. For FHA traditional purchase and refinance products, the annual premium, shown in basis points below, is to be remitted on a monthly basis, and will be charged based on the initial loan-to-value ratio and length of the mortgage according to the following schedule:
LTV
Annual Premiums for Loans
??      15 Years
= or < 95 percent
85 BPS
>95 percent
90 BPS
The annual premium for amortization terms equal to or less than 15 years remains unchanged and is collected according to the following schedule.
LTV
Annual Premiums for Loans = or
 < 15 Years
= or < 90 percent
-None-
>90 percent
25 BPS