Is it true that for fha 15 year mortgage you do not have to pay mortgage insurance for 5 years?

No. On a 15 year FHA the structure of the MI depends on the LTV (equity) of the starting loan amount. If your loan is 90% of the appraised value or less, you pay the monthly mortgage insurance for 11 years. If your loan is over 90% of the appraised value of the house, you pay mortgage insurance for the life of the loan. I'm happy to help with the financing or just give you advice. If you need more information, or a competing rate quote call, email or use my live support button to discuss or get in touch with me. Web Address is: http://www.loansfromrob.com/quote/ Email is robertlh66@verizon.net and direct phone is 240-752-7549. Good Luck -- Rob Hanson

I would simply add to Rob Hanson's response, a specific answer to your question about the cost of mortgage insurance for 15 year loan perhaps being$0? At one time that was true, but Congress and the FEDs have done much towards protecting the FHA insured loan program since then. Now you payapproximately half the monthly mortgage insurance of a 30 year fixed loanprogram. Since one pays quite abit monthly on the 30 year FHA insured loan, it is a very good savings.

There is no way to avoid paying mortgage insurance on an FHA loan. Going 15 years, and 90% LTV or lower, you pay for 11 years, if the LTV is greater than 90%, you will pay for the entire 15 years.. The better option for you to consider would be conventional financing.. if you use conventional financing and pay MI, then after 2 years, and once you reach 80% LTV, you can petition to have the MI dropped without having to refinance.. you would have to pay for an appraisal, but it can be done.. and MI factors for conventional financing at 15 years is extremely inexpensive.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

The answers listed here are all accurate. The 5 year rule was the rule. All of the lenders responding here are educated and up-to-date on FHA Lending. THAT leads to the question of where you read or who told you about the old rule. Do yourself a favor and rely on a professionals that have answered your question here. David Schwartz Banc Home Loans 714-227-5087 Serving Borrowers in Southern California