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Ok, so I want to get this right. My first payment is due on 8/1/2013 it's an FHA 30 year fixed loan. I put down 3.5% and I want to get to 78% LTV by 5 years (min) to drop off the monthly MIP. Interest + Principal is 1697.83 per month, with an interest rate of 3.25%. How much do I have to contribute per month extra to get to 78% LTV at exactly 5 years. Do I include that in the payment or should I write another check and put "Principal Payment" on it?
Ok, so I want to get this right. My first payment is due on 8/1/2013 it's an FHA 30 year fixed loan. I put down 3.5% and I want to get to 78% LTV by 5 years (min) to drop off the monthly MIP. Interest + Principal is 1697.83 per month, with an interest rate of 3.25%. How much do I have to contribute per month extra to get to 78% LTV at exactly 5 years. Do I include that in the payment or should I write another check and put "Principal Payment" on it?
Definitely write another check with principle payment...but the better way would be to pay on line. Save you the stamp and the check. When paying on line, you can add extra principle payment very easily.
Working backwards, it appears that your loan amount would have been approximately $390,120 to get that payment with those terms. At 3.5% down, that means your purchase price was approximately $400,123
If that is correct, then in order to get to 78% down, you need to get your balance down to $312,095. My handy dandy mortgage calculator says that to do that by your July 1st, 2018th payment you need to pay an extra $560 ish per month. $560/month would make your balance $311,972.66 on 7/1/18.
If these loan and purchase price numbers are off, then the prepayment will be off accordingly, so take that for what it is worth.
Whether or not you can get the MIP removed at that point is an entirely different question, but those are the numbers you've asked for.
Incidentally, if you paid $560/month extra for the life of the loan, you would pay it off in 19.5 years and save over $84,000 in interest.
Working backwards, it appears that your loan amount would have been approximately $390,120 to get that payment with those terms. At 3.5% down, that means your purchase price was approximately $400,123
If that is correct, then in order to get to 78% down, you need to get your balance down to $312,095. My handy dandy mortgage calculator says that to do that by your July 1st, 2018th payment you need to pay an extra $560 ish per month. $560/month would make your balance $311,972.66 on 7/1/18.
If these loan and purchase price numbers are off, then the prepayment will be off accordingly, so take that for what it is worth.
Whether or not you can get the MIP removed at that point is an entirely different question, but those are the numbers you've asked for.
Incidentally, if you paid $560/month extra for the life of the loan, you would pay it off in 19.5 years and save over $84,000 in interest.
Ok, that was what I was looking for. I can pay the extra 560 per month and yes, it was confirmed by me, my attorney, and the mortgage originator that my case number was pulled before 6/3/13 and the MIP will drop off at 78% LTV before I singed the closing documents.
Also, I can't pay online, I just got 2 coupons at closing for the first two months. I think once my loan is sold on the secondary market, than I might be able to pay online. I will just add a second check for 560.00 and put "Principal Payment" on it.
Even if it was prior to June 3, you will pay MIP for a minimum of 78 months.
As far as the MIP for life. I understand once you have an FHA Case number assigned (my was assigned in late April) and its on the FHA appraisal that was done in early May that you are grandfathered in. Do you agree with this? I don't think it matters when the FHA Case number is endorsed does it?
Thanks.
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