Understanding the FHA Mortgage Insurance Premium (MIP)
* Disclaimer – all information in this article is accurate as of the date this article was written * The FHA Mortgage Insurance Premium is an important part of every FHA loan. There are actually two types of Mortgage Insurance Premiums associated with FHA loans: 1. Up Front Mortgage Insurance Premium (UFMIP) – financed into the total loan amount at the initial time of funding 2. Monthly Mortgage Insurance Premium – paid monthly along with Principal, Interest, Taxes and Insurance Conventional loans that are higher than 80% Loan-to-Value also require mortgage insurance, but at...
Read MoreWhy Do I Need To Pay A VA Funding Fee?
The VA Funding Fee is an essential component of the VA home loan program, and is a requirement of any Veteran taking advantage of this zero down payment government loan program. This fee ranges from 1.25% to 3.3% of the loan amount, depending upon the circumstances. On a $150,000 loan that’s an additional $1,875 to almost $5,000 in cost just for the benefit of using the VA home loan. The good news is that the VA allows borrowers to finance this cost into the home loan without having to include it as part of the closing costs. For buyers using their VA loan guarantee for the first time on a...
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