FHA Mortgage Insurance

[Anonymous]

Looking at an FHA loan and I know about the .85% mortgage insurance.

Question. Does that mean that as the loan is paid down, that the amount paid in mortgage insurance goes down with the amount owed on the loan going down?

Thanks!

[Aprile421]

I am closing on a FHA loan Tuesday. My understanding of the mortgage insurance is it is for the life of the loan unless you refinance it to a conventional down the road. You will also pay an upfront premium which will be added to your loan, or atleast in my case that is what they have done.

[Anonymous]

I understand that it is for the life of the loan, but because it is a percentage of the principal, does that mean the actual dollar amount goes down as you pay the loan down?

[Anonymous]

The monthly MI payment will remain the same for the life of the loan (unless you put 10% down). The .85% is calculated at the time the home was purchased or refinanced.

[Anonymous]

Man, that stinks. It seems like to me that they should adjust that based on what you owe.. so .85 each year.. oh well. 

[DallasLoanGuy]

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@Anonymous wrote:

Man, that stinks. It seems like to me that they should adjust that based on what you owe.. so .85 each year.. oh well. 

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i hear we might see some changes to fha pmi.....  because it is indeed a ripoff.

i would call it usury but i dont know what govt agents troll this forum

[ezdriver]

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@DallasLoanGuy wrote:

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@Anonymous wrote:

Man, that stinks. It seems like to me that they should adjust that based on what you owe.. so .85 each year.. oh well. 

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i hear we might see some changes to fha pmi.....  because it is indeed a ripoff.

i would call it usury but i dont know what govt agents troll this forum

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When the politicians do it, they are "helping" us. When private industry does it, the politicians cry foul. Politicians are a scurge on our society.