Help! How to figure out PMI payment of FHA (loan officer, interest rate, escrow)

[glittercandy0504]

Someone please help me figure this out, because I am not sure my USDA loan will go through. This is in NJ

Purchase price: $285,000
Taxes: $8000
Insurance: $461 year

My interest rate on usda was going to be 4.25%, but from my understanding, fha interest rates are lower.

So what would be my PMI payment for a rate of 3.75% ?

[mkarch]

No way to calculate that with the given information. Need to know loan LTV.

[glittercandy0504]

What is that?

Originally Posted by mkarch

No way to calculate that with the given information. Need to know loan LTV.

[berniekosar19]

LTV = loan to value ratio i.e. how much are you putting down? 5%? 10%? 20%?
That has a direct bearing on how much PMI you'd pay

[Restrain]

PMI is a percentage of the loan amount. It is 0.5% of the outstanding loan balance. Note that HUD PMI is due over the entire ofmthemlife of the loan. Unlike conventional loans that can get the PMI dropped after 20%, PMI stays with HUD loans until the loan is payed off.

So if you are getting a FHA loan of 4%, you will be paying on a rate of 4.5%.

[meowkitty27]

I thought PMI on FHA was 1.35% of the loan amount?

[berniekosar19]

Originally Posted by Restrain

PMI is a percentage of the loan amount. It is 0.5% of the outstanding loan balance. Note that HUD PMI is due over the entire ofmthemlife of the loan. Unlike conventional loans that can get the PMI dropped after 20%, PMI stays with HUD loans until the loan is payed off.

So if you are getting a FHA loan of 4%, you will be paying on a rate of 4.5%.

Also note that FHA has changed their rules for PMI recently. Now, on an FHA loan, you have to pay an upfront insurance premium at closing, which is currently at 1.75% of the base loan amount, in addition to a monthly premium on top of your mortgage payment, that is part of your payment for the duration of the loan if you put down less than 10%; if you put down from 10-22%, then it comes off after 11 years (but then why wouldn't you do conventional).

For a conventional loan, while you pay a monthly premium, you do not have to pay an upfront premium; as well, while you can request for PMI to be taken off upon reaching 80% LTV, a bank doesn't need to do so; it automatically comes off at 78% however.

[berniekosar19]

Originally Posted by meowkitty27

I thought PMI on FHA was 1.35% of the loan amount?

Depends on how much you put down and how large your loan is. If less than 5% down and less than $625K, then it's 1.3%; more than 5% and and less than $625K loan it's 1.35%. If you borrow more it can go up to 1.5% and 1.55%, depending on the amount of the down payment.

[Modification Specialist]

I am not a loan officer, see you are looking to compare loans. Hope this helps...

FHA Mortgage Calculator
Term 30 year at 3.875% minimum 3.75% downpayment

$285,000 = Purchase price
$10,688 = Minimum down payment
$4800 = Upfront MIP
$10,802 = Closing Costs
$279113 = Mortgage Amount
$1,312.50 = Principal & Interest Payment
$666.67 = Monthly Tax Escrow Payment
$38.42 = Monthly HO Ins. Escrow Payment
$308.60 = FHA MIP
$2,326.18 = MONTHLY MORTGAGE PAYMENT

USDA Mortgage Loan Calculator
30 year Term at 4.25% minimum 2% down (guarantee fee)

$285,000.00 = Sales Price
$285,000.00 = Acquisition Amount
$5,816.33 = USDA Guarantee Fee
$290,816.33 = Total Loan Amount
$1,430.64 = Principal & Interest Payment
$666.67 = Monthly Tax Escrow Payment
$38.42 = Monthly HO Ins. Escrow Payment$72.70 = MIP | PMI
$2,208.43 = MONTHLY MORTGAGE PAYMENT

[thelopez2]

4.25% or 5%,which is better?