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PMI on FHA, life of loan?

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QueenBeeOC
Regular Contributor

PMI on FHA, life of loan?

After 3 Years (!!) of rebuilding our credits with the help of these forums and saving our $ we have finally gotten pre-approved, picked a house, made an offer, got accepted and are in day 10 of escrow. Potentially closing on May 7th!! All of it  feels super surreal and nerve racking!

 

Now comes the fun part, negotating repairs. We are doing an FHA loan for 3.375 % with only 3.5 % down and want to know when can we get out of PMI?

 

Is it LTV 80%? Or is it life of the loan, that we will have to refi out of it? 

 

Also, will we EVER get a rate that low again? I mean we will save money getting rid of PMI cause that's a large chunk of change. 

 

Thanks for your help in advance!

 

 

Southwest: $9k - Discover It $1,900 - Amazon $2,900 - CAP1 - $1,500 - QuickSilver (FKA Orchard) - $900 - J. Crew $1K - LOFT $1K - Nordstroms $1K - Amex BCE - $3,000
Scores: Credit Karma 687, Credit Sesame 660- EQ 643 - EX 665 (from Amex)- TQ 655 Lender Pull: 693


Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: PMI on FHA, life of loan?

Rate seems very low for an FHA congrats.  PMI is for the life of the loan.  Good luck

Message 2 of 5
StartingOver10
Moderator Emerita

Re: PMI on FHA, life of loan?


@QueenBeeOC wrote:

After 3 Years (!!) of rebuilding our credits with the help of these forums and saving our $ we have finally gotten pre-approved, picked a house, made an offer, got accepted and are in day 10 of escrow. Potentially closing on May 7th!! All of it  feels super surreal and nerve racking!

 

Now comes the fun part, negotating repairs. We are doing an FHA loan for 3.375 % with only 3.5 % down and want to know when can we get out of PMI?

 

Is it LTV 80%? Or is it life of the loan, that we will have to refi out of it? 

 

Also, will we EVER get a rate that low again? I mean we will save money getting rid of PMI cause that's a large chunk of change. 

 

Thanks for your help in advance!

 

 


Life of loan. 3.375% is an excellent interest rate. 

 

If you were to put down 10% on a FHA loan rather than 3.5% then you could cancel the MI after 11 years. Otherwise you will have to refi to get out of it

Message 3 of 5
QueenBeeOC
Regular Contributor

Re: PMI on FHA, life of loan?

I was shocked when I saw that low of a rate! 

 

now, to refi out of the FHA loan, do we have to be at a certain LTV?

Southwest: $9k - Discover It $1,900 - Amazon $2,900 - CAP1 - $1,500 - QuickSilver (FKA Orchard) - $900 - J. Crew $1K - LOFT $1K - Nordstroms $1K - Amex BCE - $3,000
Scores: Credit Karma 687, Credit Sesame 660- EQ 643 - EX 665 (from Amex)- TQ 655 Lender Pull: 693


Message 4 of 5
DallasLoanGuy
Super Contributor

Re: PMI on FHA, life of loan?


@QueenBeeOC wrote:

I was shocked when I saw that low of a rate! 

 

now, to refi out of the FHA loan, do we have to be at a certain LTV?


to refi out and into conventional you would just need to be at 95% after an closing coasts are added to the loan amount

 

Retired Lender
Message 5 of 5
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