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If my lender paid upfront MIP on my FHA loan do I still have to pay it for the life of the loan

by janiceshuleyman from , . Jul 1st 2013 Reply


Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions

Yes, every month.

Jul 1st 2013
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William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

FHA has 2 forms of mortgage insurance. First is the Up Front Mortgage Insurance Premium (UFMIP). This is a "One Time" charge, and the current rate is 1.75% of the loan amount, and it's added to your loan, but you also have to pay MI monthly as well. The rate will vary depending on how much you put down, and how long you finance for, and if you put less than 10% down, you will pay for the life of the loan.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 1st 2013
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

Yes unfortunately your loan documents state you must pay it. The only way to eliminate the MIP is if you refinance out of the loan.

Jul 1st 2013
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Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions

FHA loans charge mortgage insurance two ways. First is MIP (Mortgage Insurance Premium). This is usually 1.75% of the loan amount, added to your loan. The other is monthly mortgage insurance, which for less than 5% down is 1.35%, and is on the loan for the life of the loan. Below 95%, is is 1.30% monthly. At 10% down, the mortgage insurance can potentially go away after 11-years. These are the current rules as of June 3, 2013.

Jul 1st 2013
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William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

FHA has 2 forms of mortgage insurance. First is the Up Front Mortgage Insurance Premium (UFMIP). This is a "One Time" charge, and the current rate is 1.75% of the loan amount, and it's added to your loan, but you also have to pay MI monthly as well. The rate will vary depending on how much you put down, and how long you finance for, and if you put less than 10% down, you will pay for the life of the loan.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 1st 2013
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Steven Cook (stcookmortgage@gmail.com)
#37 ranked lender in Washington - 256 contributions

Janice -- as noted by others -- there are two parts to MIP with FHA. You will have to pay the yearly (collected monthly) as long as you havethe loan, unless you had put more than 10% down (if you did, why didn't your loan officer recommend a conventional loan), or you are in a 15 year loan. Your best bet is to work with a local, licensed loan officer to find when it might make sense to refinance into a conventional loan -- where the MortgageInsurance can still be purchased to eliminate at 78% LTV, and there is no upfront MIP.

Jul 1st 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

There are two Insurance payments on FHA loans and the MIP is just the front end payment and then you pay of the Monthly after that. The Monthly MMI can go away in some cases.

Jul 1st 2013
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James Mazzola (Mazzola)
#109 ranked lender in New Jersey - 314 contributions

FHA has 2 forms of mortgage insurance. First is the Up Front Mortgage Insurance Premium (UFMIP). This is a "One Time" charge, and the current rate is 1.75% of the loan amount, and it's added to your loan, but you also have to pay MI monthly as well. The rate will vary depending on how much you put down, and how long you finance for, and if you put less than 10% down, you will pay for the life of the loan

Jul 1st 2013
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Ken Dunn (loanman)
#18 ranked lender in Idaho - 43 contributions

There are options if you have equity and good credit to refinance to a different loan type that does not have MI or a better MI rate. If your Current FHA loan is insured before June 3rd then the MI is not for the life of the loan.

Jul 1st 2013
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Raymond Denton (Raymond)
#10 ranked lender in Ohio - 224 contributions

Yes.

Jul 3rd 2013
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