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FHA Mortgage Insurance

FHA Update


As of January 27th, 2017, FHA’s monthly mortgage insurance is .85% for loans with 5% or less down, and .80% with more than 5% down.

If a 15 year mortgage if chosen the mortgage insurance is .70% with 10% or less down and .45% with more than 10% down.

What does this mean for you?

For every $100,000 borrowed, an additional $50.00 will be added to your monthly payment with a down payment less than or equal to 5% (100,000 x .85% /12 = $70.83).

Under the new mortgage insurance rules (06/03/2013), the monthly mortgage insurance will last the life of the loan if the down payment is less than 10%. The mortgage insurance will cancel in 11 years if the down payment is greater than 10%.

There is also a 1.75% up front mortgage insurance (UFMIP) which is allowed to be financed in the loan. What this means to you is an additional $1,750 will be added to your loan for every $100,000 borrowed.

FHA loans are still one of your best financing alternatives. The minimum down payment is low (3.5%) and the rates are excellent!

* This is an example of a 30 years fixed rate loan with a loan to value > 95%.