mortgage insurance costs
FHA Mortgage Insurance Costs
FHA requires a mortgage insurance premium (MIP) for its home buying programs.
An up front premium of 1.75% of the loan amount is paid at closing and can be financed into the mortgage amount. In addition, there is a monthly MIP amount included in the PITI of .55%.
Condos do not require up front MIP – only monthly MIP.The mortgage insurance premium paid on an FHA loan is always significantly higher than on a conventional program.
On an FHA loan the borrower will be charged a mortgage insurance premium equal to 1.75% of the purchase price of the property and a renewal premium of .55% in subsequent years.
By contrast the mortgage insurance premium charged at closing on a conventional program is as low as .600% (with 10% down payment) with renewal rate in subsequent years as low as .500% in subsequent years.
My name is David Bradley. I want to thank you for taking the time to visit my website, where I guarantee you'll find plenty of helpful information to assist you in purchasing your new home or refinancing your current mortgage. I am a Mortgage Consultant serving Dallas, Texas and the surrounding areas.