Pmi

[weartoomanyhats]

Ok. We were doing a 15-year mortgage. I did notice that FHA terms were much more pleasant for 15-year than 30-year mortgages. I totally forgot about that!

Thank you!

[FLHomeBuyer]

at least 5 years of pmi AND upfront pmi. FHA seemed like such a good idea when we started this process but now there seem to be a lot of extra costs associated with it. We both just graduated from college so we don't have a down payment saved, but were planning on paying extra each month towards the principal to get rid of hte pmi faster. I had no idea we had to wait 5 years regardless. Thanks for all the information!

[rcarrillo]

Originally Posted by chuck-a-muck

Also, you may get a prorated portion of your upfront MIP payment returned, which is required on all FHA mortgages, if you pay off the loan within 5 years -- you can get this money back.

Not anymore unfortunately. Now you can only get the pro-rated amount as a credit towards a new UFMIP if you refinance from an FHA loan into a new FHA loan.

If you refinance into a different loan product, pay off the loan or sell the home that UFMIP is gone. I think this was in the last MIP revision in 2005, so it applies to any mortgages after that.

FHA is going to be changing their MI again on July 14th, they are switching to a risk-based model that varies the upfront and monthly MI depending on down payment and credit score.