PMI Rate FHA versus Conventional

[maryellis1981]

Hi Everyone,

I heard from a friend of mine who recently purchsed a home that the FHA PMI rate is higher than the conventional PMI rate, is this true?  When I am ready to buy I will have 5% dp, my LO said I can get a conventional with this down-payment.  Should I just go with the conventional?  What generally are the interest rates between a conventional and FHA?  Are they generally similar?  I'm trying to figure out which mortgage option would be best financially.

My credit is in the low 700's.

Thanks!

[BrianB_The_Loan_Professor]

FHA Rates are lower - conventional PMI is usually lower (depends on scores)

5% down punch out the numebrs for both and see which makes sense

There is also a new option some banks have where you can make a one time upfront payment (similar to fhas funding fee) and not have a monthly PMI payment

B