Profile picture for user826591

fha mortge pmi fee rolled in to loan do i have to pay it again at closing

  • August 21 2012 - Staten Island
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (1)

Your lender will be able to explain this, but there are 2 types of PMI that you pay with FHA.  When you close ont he property, 1.75% of your down payment (so half of the minimum required down payment) goes towards your upfront mortgage insurance, and then there is a 1.2% Mortgage insurance over the life of the loan.  So your total down payment at close will be a minimum of 3.5%, but only half of that actually goes towards the "equity" in the house, the rest goes towards mortgage insurance.
You can have the mortgage insurane removed from an FHA loan after a minimum of 5 years if you can prove at least 20% equity without refinancing.
  • August 23 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.