City-Data Forum FHA Loan: PMI (loan officer, credit score, 30 year fixed, upfront)
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03-05-2014, 09:58 AM
 313 posts, read 435,763 times Reputation: 191

On a 277,000 loan amount, how much will the upfront MI be? How much will the monthly be?

03-05-2014, 10:05 AM
 Location: Southern California 12,720 posts, read 12,525,749 times Reputation: 35307
Quote:
 Originally Posted by suaz 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

03-05-2014, 11:02 AM
 Location: MID ATLANTIC 8,239 posts, read 20,558,988 times Reputation: 9542
Assuming 30 year fixed, max loan amount - I am calculating by hand, up front = \$4847.50 and monthly \$311.63.

03-05-2014, 01:31 PM
 Location: Silver Spring, MD 8 posts, read 14,196 times Reputation: 16
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.

03-05-2014, 06:14 PM
 Location: Plano, Texas 1,675 posts, read 6,671,445 times Reputation: 696
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.

03-06-2014, 02:00 PM
 313 posts, read 435,763 times Reputation: 191
I read that the upfront MIP has gone up to 2.25%.

03-06-2014, 02:27 PM
 Location: New York 2,251 posts, read 4,558,967 times Reputation: 1611
Quote:
 Originally Posted by VictorBurek 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%.
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..

03-07-2014, 07:09 AM
 Location: MID ATLANTIC 8,239 posts, read 20,558,988 times Reputation: 9542
Quote:
 Originally Posted by suaz 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.

03-07-2014, 07:13 AM
 Location: Southern California 4,453 posts, read 5,918,622 times Reputation: 2226
Quote:
 Originally Posted by suaz 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.

03-07-2014, 10:35 AM
 Location: New York 2,251 posts, read 4,558,967 times Reputation: 1611
Quote:
 Originally Posted by SmartMoney 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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