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FHA Mortgage Insurance

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Anonymous
Not applicable

FHA Mortgage Insurance

So we are going the FHA route instead of the USDA guaranteed because of deferred student loan issues. Anywho, I know with FHA comes more expensive monthly mortgage insurance. Smiley Sad 

 

My question is with the new mortgage insurance decrease for FHA (.85%) does it automatically go away after 11 years or is it for the lifetime of the loan? Can it ever be petitioned to be removed. I do plan to ask our LO but she is closed until Monday. 

 

 

Message 1 of 16
15 REPLIES 15
StartingOver10
Moderator Emerita

Re: FHA Mortgage Insurance


@Anonymous wrote:

So we are going the FHA route instead of the USDA guaranteed because of deferred student loan issues. Anywho, I know with FHA comes more expensive monthly mortgage insurance. Smiley Sad 

 

My question is with the new mortgage insurance decrease for FHA (.85%) does it automatically go away after 11 years or is it for the lifetime of the loan? Can it ever be petitioned to be removed. I do plan to ask our LO but she is closed until Monday. 

 

 


If you put 10% or more down for your down payment on a FHA loan, then the MIP (Mortgage Insurance Premium) goes away after 11 years.

 

If you put down less than 10% then the monthly mortgage insurance premium stays for the life of the loan.

Message 2 of 16
Anonymous
Not applicable

Re: FHA Mortgage Insurance

Yikes! We are putting down less 10%. Next question, does the MIP decreases as the principal decreases or is it the same based on the financial portion?

Message 3 of 16
StartingOver10
Moderator Emerita

Re: FHA Mortgage Insurance

It is the same.

Message 4 of 16
Anonymous
Not applicable

Re: FHA Mortgage Insurance

Urgh. I'm so sorry to hear this, CreditThinker. But in the end, having a home of your own will be worth it. At least the interest rates are great! When my parents bought their home, they had 9%!

Message 5 of 16
Anonymous
Not applicable

Re: FHA Mortgage Insurance

Its does suck but yes the rate is .75 cheaper with fha than with usda. This is not our forever home so the MIP isnt a true deal breaker. We are buying in a buyer"s market and the area is still being developed so hopefully the value increases in the next 10 years.
Message 6 of 16
Anonymous
Not applicable

Re: FHA Mortgage Insurance

what is your rate if you do not mind me asking please

Message 7 of 16
Anonymous
Not applicable

Re: FHA Mortgage Insurance

3.25
Message 8 of 16
Anonymous
Not applicable

Re: FHA Mortgage Insurance

we locked in 3.50 Usda loan

Message 9 of 16
Anonymous
Not applicable

Re: FHA Mortgage Insurance

I'm going with a CalPlus Conventional. From the explanation from my LO,if I went with just the FHA then my PMI is for the life of the loan vs the calplus my PMI will only last until 80%. I initially started with FHA but my LO said with the price of the hiuse , the calplus would be more benifical for me as I would be paying less for mortgage and bring in less for down payment/closing than if I went with a FHA
Message 10 of 16
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