Insurance FAQ
 

FHA Mortgage, Mortgage Insurance Premium?

Question by changethis | Posted in Renting & Real Estate

I am getting an FHA loan in California and the lender is telling me that the government will charge me a total of 2.25% upfront for the MIP or Mortgage Insurance Premium, many people have posted that it is 1.5%, does it vary from state to another or is the Lender just making extra money off of me ?
I would appreciate an answer from a knowledgeable loan officer or someone in that business.

Thanks

Answer: The 1st answer has mortgage insurance and mortgage insurance premium confused. It is 2.25%. You will have to pay it for your FHA loan but You have the option to finance it. Most people do.
Even after you eighter pay or finance this amount, you will still need to pay your monthly PMI(mortgage insurance)
 
 

FHA Loan, Upfront Mortgage Insurance Premium?

Question by Neta | Posted in Renting & Real Estate

I'm in the process of buying a house through the FHA loan. Anyway, is the mortgage insurance premium required if I am putting down 20% of the cost? And if so, instead of adding the insurance premium into my loan amount, can I just pay it cash??

Answer: If you have 20% to put down, then my question is WHY are you doing an FHA loan?

Do you realize that you can get a better rate with another loan program?

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Will My MIP (mortgage Insurance Premium) Increase After A Streamline FHA Refinance?

Question by Kobe | Posted in Renting & Real Estate

I bought my house 2 years ago through a FHA loan. Im about to do a streamline refi, but was told by the lender that my MIP (mortgage insurance premium) would almost double due to new FHA regulations. Is this valid?

Answer: It will go up because the MIP premium fees increased during that time. FHA increased mortgage insurance fees from .55% of the loan amount to 1.55% last year.

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Are The Up-front Mortgage Insurance Premiums On FHA Loans Tax Deductible?

Question by dreucla23 | Posted in United States

This up-front mortgage insurance premium (MIP) was rolled/financed into my loan.
And if they are tax deductible, do I deduct all of it on the tax year I closed on my home? Or do I have to spread out the deductions over the lifetime of the loan?
Also, please provide a reference with your answer. I've done plenty of online searches and there is an abundance of conflicting information.

Answer: yes they are

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When You Get FHA Loan When Do You Pay Mortgage Premium Insurance: Up Front, As Monthy Payments Or Both?

Question by Julka | Posted in Renting & Real Estate

Someone told me if I paid upfront I should not be paying monthy premiums, is that correct?
Hi "Golferwhoworks". I really appreciate your answer. I can't find the answer anywhere and I have spent hours researching it online.

Answer: Hi, Julka.

FHA 30yr Fixed loans require both an UFMIP (Up Front Mortgage Insurance Premium) of 1.75% and monthly Mortgage Insurance premium of 0.55% if your LTV is over 95%; 0.5% if your LTV is under 95%. FHA 15 yr Fixed loans have the same UFMIP, but if your LTV is over 90%, the monthly MI is 0.25%. If the LTV is below 90%, there is no monthly MI.

The UFMIP can be financed into the loan. Whoever you're getting advice from is not familiar with FHA lending.

I'm a little surprised that you haven't received this answer until now. This is pretty simple stuff straight from the FHA guidebook.

Email me, and I'd be happy to go through

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How To Remove FHA Mortgage Insurance Premium (MIP) From Your Loan

We discuss the steps and tricks to take to remove MIP from your mortgage.

Monthly Insurance Premiums on FHA loans will increase by over 63 ...

by Dan Price

Although the upfront mortgage insurance premium is going down, “the real impact to the homebuyer is actually a net increase in their out-of-pocket costs because the monthly premium is going up by 63 percent,” Nicholas said. 4 to lock in a low monthly insurance premium on FHA loans, according to Gibran Nicholas of the CMPS Institute, which trains and certifies mortgage bankers and brokers. “Remember, sellers can pay the upfront premium or it can be financed into the loan amount, so homebuyers rarely pay the upfront premium out of pocket,” he said. After that, the monthly insurance premiums on FHA loans will increase by over 63 percent. “On the other hand, the increase in the monthly premiums will be paid right out of the homebuyer’s pocket with their mortgage payment each month. If the same homebuyer waits until after, the insurance premium would jump to $148. 4 would pay an insurance premium of $88....

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