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FHA Mortgage Insurance Premiums Explained
This video breaks down the essentials of FHA mortgage insurance premiums. Before getting into the details, here are the key points:
- Purpose:
- It
protects the lender if you default. This protection is important because
FHA loans usually require low down payments.- Two
Key Components:- Upfront
Premium: Typically, 1.75% of the loan amount.- Monthly
Premium: This fee varies based on your loan scenario.- Impact
of Down Payment:- With
a smaller down payment, you’ll pay the monthly premium for the life of
the loan.- With
a larger down payment, the premium may drop off after 11 years.- Refinancing
Options:- As
you build equity, refinancing into a conventional loan might allow you to
eliminate FHA mortgage insurance.Check it out if you’re considering an FHA loan and want to know more about mortgage insurance.
https://youtube.com/shorts/qRgkoCSJMzg
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This discussion was modified 3 hours, 24 minutes ago by
Chad Bush.
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This discussion was modified 2 hours, 5 minutes ago by
Sapna Sharma.
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