15 year fha loan with >10% down questions (PMI, credit, upfront)

[Bong477]

Can someone please clarify (and hopefully cite reference since the information out on the internet on these issues is conflicting). Thanks in advance!

My understanding for a 15 year FHA, LTV more than 80% but less than 89.99% after April 18 2011.

Upfront MI is 1%
Annual MI is 0.25%
MI is cancelled at 78% LTV with no minimum time you must pay it.

Please correct if I'm wrong.

Three things I can't figure out

1) If I roll closing costs into the loan (this is a refi) does that count as part of the loan in LTV calculations for MI purposes? Or is it just the amount of property I'm mortgaging that is included?

2) Is MI cancelled automatically or do you have to ask for it?

3) Can you make extra principle payments and pay down to 78% early or is it only by the amortization schedule?

[kinkytoes]

Why aren't you getting a conventional loan? When I checked, the FHA loans always had higher rates. If you have good credit and a good downpayment, I'd compare a conventional 15 year loan.

[chet everett]

Agree with kt -- assuming you have good credit and sufficient resources to get conventional that is probably gonna save you some money. If you find a lender that'll lend you 10% on a second together with your 10% down that will eliminate an PMI...