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What are the FHA Mortgage Insurance Costs?FHA Mortgage Insurance Costs
FHA requires a mortgage insurance premium (MIP) for its home buying programs. An up front premium of 1.50% of the loan amount is paid at The FHA mortgage insurance costs (which are the premiums) paid on the FHA loan is always significantly higher than on a conventional program. So don't be surprised to see a higher amount. On a FHA loan the borrower will be charged a mortgage insurance premium equal to 1.50% of the purchase price of the property and a renewal premium of .500% in subsequent years. By contrast the mortgage insurance premium charged at closing on a conventional program is as low as .500% with renewal rate as low as .300% in subsequent years. But remember, most coventional programs require a 10% down payment, while the FHA program requires only a 3% down payment. So your closing costs will be a great deal lower with the FHA loan than with a coventional loan. So don't let the FHA mortgage insurance costs (which are the premiums) scare you. If you have any questions about these FHA mortgage insurance costs, be sure to contact me. If you would like to know if you qualify for a FHA mortgage, click here. By clicking on the above link, you'll be taken to our secure online quick loan application form. After you fill out the form, you'll be taken to a page with a list of documents that you'll need to gather. Please be sure to print out this page! Then you're on the way to qualifying for the best fha home loan available. ________________________________________________________________ Return from FHA Mortgage Insurance Costs, to First Time Home Buyer Solutions home page.
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