Information pertaining to how to qualify for a mortgage and the latest information about mortgage guidelines.
FHA Mortgage Insurance (current rates)
Posted 11-03-2008 at 10:54 AM by ShanetheMortgageMan
You might be familiar with this term being called "PMI", but on FHA mortgages it's called MI (PMI stands for private mortgage insurance, and FHA's mortgage insurance is provided by the government, not a private party).
With FHA you are charged an upfront mortgage insurance premium (UFMIP) that can be financed into the loan amount (loan amount increases to cover it) and then also a monthly mortgage insurance (MI) amount.
On a purchase transaction the UFMIP is 1.75% of the base loan amount. So a base loan amount of $150k would have a $2,625 UFMIP, making the total loan amount $152,625. On a full credit qualifying refinance (vs. a streamline refinance) the UFMIP is also 1.75%. On a streamline refinance (where you are going from FHA to a new FHA loan and aren't taking any money out) it's only 1.50%. If are you are doing FHA's relatively new program, FHASecure, and you are delinquent on the mortgage, it's 3.00%.
The monthly MI is either .5%, .55%, or .25% of the loan amount per year, paid in monthly installments. With loan terms longer than 15 years and less than 5% down (or less than 5% equity), it's .55% per year, with 5% or more down (or equity, etc.) it's .5% per year. With loan terms 15 years or shorter and less than 10% down it's .25%, with 10% or more down there is no monthly MI. So on a $150k loan amount, assuming 3% down, 30-year term, it'd be $825/mo of monthly MI a year, or $68.75/mo. This amount will be added to the PITI payment, you don't have to cut a seperate check each month.
The PMI must be paid for at least 5 years and until your mortgage balance is 78% of the home's original value when you obtained the mortgage... can't pay ahead of time, or early, or a PMI buyout fee, etc.
With FHA you are charged an upfront mortgage insurance premium (UFMIP) that can be financed into the loan amount (loan amount increases to cover it) and then also a monthly mortgage insurance (MI) amount.
On a purchase transaction the UFMIP is 1.75% of the base loan amount. So a base loan amount of $150k would have a $2,625 UFMIP, making the total loan amount $152,625. On a full credit qualifying refinance (vs. a streamline refinance) the UFMIP is also 1.75%. On a streamline refinance (where you are going from FHA to a new FHA loan and aren't taking any money out) it's only 1.50%. If are you are doing FHA's relatively new program, FHASecure, and you are delinquent on the mortgage, it's 3.00%.
The monthly MI is either .5%, .55%, or .25% of the loan amount per year, paid in monthly installments. With loan terms longer than 15 years and less than 5% down (or less than 5% equity), it's .55% per year, with 5% or more down (or equity, etc.) it's .5% per year. With loan terms 15 years or shorter and less than 10% down it's .25%, with 10% or more down there is no monthly MI. So on a $150k loan amount, assuming 3% down, 30-year term, it'd be $825/mo of monthly MI a year, or $68.75/mo. This amount will be added to the PITI payment, you don't have to cut a seperate check each month.
The PMI must be paid for at least 5 years and until your mortgage balance is 78% of the home's original value when you obtained the mortgage... can't pay ahead of time, or early, or a PMI buyout fee, etc.
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