Posted on: 15th Apr, 2009 02:32 pm
My FHA loan lender is insisting I pay 1.75 % of loan amount as upfront insurance ( this is a hi -rise condominium in NYC ) in addition is asking me to pay 0.05% of loan amt / month for minimum 5 years for mortgage insurance.
My question on FHA loan's:
1. For condominium in NYC do they need upfront insurance.
2. If I am paying over 20% of appraised value as down payment, do I need to pay additional 0.05% monthly for Morgage Insurance.
Thanks
My question on FHA loan's:
1. For condominium in NYC do they need upfront insurance.
2. If I am paying over 20% of appraised value as down payment, do I need to pay additional 0.05% monthly for Morgage Insurance.
Thanks
If you are goign to take FHA loan and you are makign equal to or mroe than 20% down, then you do nto need any PMI.
If your makign less then 20% down then you will need to pay PMI and FHA loans have an Upfront PMI(MIP) of 1.75%
If your makign less then 20% down then you will need to pay PMI and FHA loans have an Upfront PMI(MIP) of 1.75%
Hi
I agree with what Realgeni had said. If you're paying over 20% of the home's value as down payment, you shouldn't be paying private mortgage insurance.
I agree with what Realgeni had said. If you're paying over 20% of the home's value as down payment, you shouldn't be paying private mortgage insurance.
first of all, fha loans do not use private mortgage insurance. fha loans are loans that are insured by the federal government. in order to compensate the government (or, more appropriately, fha), there is a mortgage insurance premium that is paid.
the lender in this situation is correct.
the lender in this situation is correct.
George,
Are you sure. I am surprised with your answer.
Are you sure. I am surprised with your answer.
yup