One of the ways that FHA have chosen to combat themselves against increasing the continued risk of foreclosure is by increasing the costs for Mortgage Insurance Premium in the upfront and monthly MIP side of costs. In an FHA loan, you pay up front Mortgage Insurance, and a monthly Mortgage Insurance. In the below chart, the larger percentage reflects the UpFront and the smaller is the monthly. You take the percentage and multiply that times the loan amount on the upfront and you get the cost up front…for example, on a $100,000 loan with 1.75% Upfront MI, your cost would be $1,750. On the monthly, you take the loan amount times the rate, and divide it by 12 and you get the monthly. So, $100,000 loan with .5% monthly means you have a $41.66 monthly MI payment to your total payment.
30/25/20 Year Fixed
All Credit Scores* Up-Front Mortgage
Insurance Premium Annual Premium
= 90% Loan to Value(10% or more down) 1.75% .50%
= 90.01% – 95% Loan to Value(9.99% – 5.00% down) 1.75% .50%
= > 95% Loan to Value (5.01% – 2.25% down) 1.75% .55%
15/10 Year Fixed
All Credit Scores* Up-Front Mortgage
Insurance Premium Annual Premium
= 90% Loan to Value(10% or more down) 1.75% NONE
= 90.01% -94.99% Loan to Value(9.99 – 5.01 down) 1.75% .25%
= > 95 Loan to Value (5.00 – 2.25 down) 1.75% .25%
Leave a Reply