Quote:
Originally Posted by K-SawDude
I'm hoping to hear from a few lenders/brokers on this . . .
If I'm doing an FHA refi from 30 year to 15 year where the LTV will be < 90% but > 78%, are the following statements all true?
(1) Monthly MI will be required, but only as long as the loan is > 78% LTV.
(2) After the loan hits 78% LTV, the MI for the monthly payment is immediately dropped by the lender.
(3) There is no 5-year or other minimum term for paying MI.
(4) The LTV will always be determined off of the appraisal used for the refinance. Neither the original purchase price nor any subsequent appraisals will bear on the LTV determination.
If anyone can confirm and/or correct my understanding here, please let me know.
(BTW, I know some here may wonder why I'm not considering non-FHA loans. My specific situation makes the FHA more attractive than conventional, due to housing type, interest rates, and the refund of initial mortgage insurance paid for original loan. And I don't have enough for a downpayment to get it down to 80%.)
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the answer to each is yes. Also, the MI on a 15year amortization when under 90% is .25. So, if the loan amount is $200,000, the mortgage insurance is $500 per year. This would add (500\12) $41.66 to your payment. If ltv is over 90%, then it would double.
Also, any FHA mortgage with a term greater than 15 years does require that MI be paid a minimum of 5 years regardless of loan to value.
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