FHA Mortgage Insurance
On Monday, monthly mortgage insurance premiums will go up .25% for all new FHA loan applications.
A 3.5% down mortgage will now have an annual premium paid monthly of 1.15%.
We do have a conventional upfront mortgage insurance product that allows for 5-15% down with no monthly mortgage insurance premiums. Depending on the down payment and credit score, once you pay an upfront premium, you will not have any additional fees for MI tacked on. For instance with a 10% down payment and a 720 credit score < $417,000 loan amount, the upfront cost is 1.25. That is a lot less than FHA’s 1% upfront plus 1.15% annual.