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Old 03-05-2014, 09:58 AM
 
313 posts, read 435,763 times
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On a 277,000 loan amount, how much will the upfront MI be? How much will the monthly be?
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Old 03-05-2014, 10:05 AM
 
Location: Southern California
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Quote:
Originally Posted by suaz View Post
On a 277,000 loan amount, how much will the upfront MI be? How much will the monthly be?
https://www.whatsmypayment.com/FHA/

Using this and some estimates/assumptions I came up with:

Upfront MI: $4,764.00
Monthly MI: $306.25
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Old 03-05-2014, 11:02 AM
 
Location: MID ATLANTIC
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Assuming 30 year fixed, max loan amount - I am calculating by hand, up front = $4847.50 and monthly $311.63.
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Old 03-05-2014, 01:31 PM
 
Location: Silver Spring, MD
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SmartMoney is spot on. If you want to know the formula, it is 1.75% of the loan amount upfront, 1.35% divided by 12 for the monthly.
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Old 03-05-2014, 06:14 PM
 
Location: Plano, Texas
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and monthly MI used to fall off after you reached 78% loan to value with a minimum of 5 years of payments...now MI is for the life of the loan.

If you can, do a conventional loan, they are much better in todays market than FHA.
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Old 03-06-2014, 02:00 PM
 
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I read that the upfront MIP has gone up to 2.25%.
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Old 03-06-2014, 02:27 PM
 
Location: New York
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Quote:
Originally Posted by VictorBurek View Post
and monthly MI used to fall off after you reached 78% loan to value with a minimum of 5 years of payments...now MI is for the life of the loan.

If you can, do a conventional loan, they are much better in todays market than FHA.
Agree - are you rushing to pay more, or are you seeking to pay less?

We don't know your situation - is the loan officer that is doing your loan putting you into an FHA mortgage? Have you discussed other options. Have you droped in line "I'm going to ask another lender" if they can get a better loan.

Is the FHA Mortgage the only loan you can qualify for either due to - a low down payment, or a low credit score?

"Victor is spot on" mentioning a convential loan. A conventional loan is a much better loan than an FHA Mortgage.
  • FHA M/I is for the life of the loan!!!
  • There will be a point in the future you will want a lower payment. Causing you the refianced, that can cost your $1000's in closing costs or lost equity.
  • Conventional mortgage having PMI, it can be removed when your LTV gets lower than 77.5%.
Think about this which is better?
  1. Looking at the time (months) to correct items on your credit, or how long it will take you to save up more to apply a larger down payment.
  2. Compeared to (years) how much more you pay and cost you over the lifetime of the loan.
Option (1) is a better option to pursue if you want to spend less over the lifetime of your loan.


Again are you looking to pay more, or are you seeking to pay less?

Last edited by Modification Specialist; 03-06-2014 at 02:47 PM..
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Old 03-07-2014, 07:09 AM
 
Location: MID ATLANTIC
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Quote:
Originally Posted by suaz View Post
I read that the upfront MIP has gone up to 2.25%.
It was at one time, when the monthly was far more affordable and 1/4 of today's monthly rate. Ask anyone in the business and they will take the old way over the current way, any day.
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Old 03-07-2014, 07:13 AM
 
Location: Southern California
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Quote:
Originally Posted by suaz View Post
On a 277,000 loan amount, how much will the upfront MI be? How much will the monthly be?
What are you using FHA is the question.
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Old 03-07-2014, 10:35 AM
 
Location: New York
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Quote:
Originally Posted by SmartMoney View Post
It was at one time, when the monthly was far more affordable and 1/4 of today's monthly rate. Ask anyone in the business and they will take the old way over the current way, any day.

SmartMoney - "Very we'll said !!!!"
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