Posted on: 11th Apr, 2010 02:25 am
i'm trying to refinance my conventional loan to fha loan. my lender told me that i have to pay upfront mi(1.75%) and monthly mi(0.5%). but i haven't been able to get one answer on the duration of the monthly mi. i was told that i have to pay it until the combined ltv is 75% and other guy told me that i have to pay a minimum of 5yrs. is it both min 5 yrs and combined ltv is 75%? or is it just ltv is 75%?
also, i read in the mortgagee letter 08-16ml.doc on hud site that the upfront mi is 125 basis points (for credit score > 680) but my lender is telling me that it is 175 basis points. it is 175 basis points for someone whose credit score is < 600. which is true, 125 or 175 basis points?
also, i read in the mortgagee letter 08-16ml.doc on hud site that the upfront mi is 125 basis points (for credit score > 680) but my lender is telling me that it is 175 basis points. it is 175 basis points for someone whose credit score is < 600. which is true, 125 or 175 basis points?
As far as I know, once you've a combined LTV of 75%, you'll be able to discard the mortgage insurance by contacting your lender.