what you need to know about fha upfront mortgage insurance
TRANSCRIPT
is just one of the insurance premiums you will pay
when you take on a new FHA loan. This insurance
gets paid at the beginning of the loan and is a one
time fee; once you pay it at the closing (unless you
finance it), you are done; you do not pay it again.
Upfront Mortgage Insurance
The FHA upfront mortgage insurance that you pay is
different than the annual mortgage insurance you will
pay for the life of the FHA loan. The annual premium
is similar to PMI on a conventional loan – you pay it on
a monthly basis with your mortgage payment.
Annual Mortgage Insurance
Different from
FHA Upfront mortgage insurance, as the name
suggests, is strictly paid at the closing. You pay it
before you even take on the loan. You can pay it in
cash at the closing or you can finance it into your loan
without it affecting your loantovalue ratio.
FHA Upfront Mortgage Insurance
When you Pay
There is one circumstance that enables you to get
your UFMIP back. This only occurs when you
refinance your current FHA loan into a streamline FHA
loan. This is typically done when interest rates get
much lower than they were when you took out your
original FHA loan
FHA UFMIP
You can Get
BACK
If you paid UFMIP on one FHA loan, you will still be
required to pay it on any subsequent FHA loans that
you receive. This is true even if you refinance into
another FHA loan.
on Every FHA Loan
You Pay UFMIP
might seem like an added cost, but it is a convenience
that the FHA provides you with by giving you access to
these loans. Without FHA loans, fewer borrowers
would get approved for a mortgage because they have
more flexible guidelines and competitive rates.
and annual mortgage insurance
FHA upfront mortgage insurance
Finding the
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Information Provided by
Justin Mchood He is Americas Mortgage Commentator
and has been providing Mortgage
commentary for over 10 years.
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