Is there a difference in Private Mortgage Insurance rates between Conventional loans and FHA loans?

The Mortgage Insurance for FHA Insured Loans are different as FHA Insured Loans are backed by the United States Government and Conventional Loans are backed by Private Mortgage Insurance Entities. The rates are based on Credit Scores, Property Type, and Loan to Value to name a few items. You should always compare all available loan programs when considering your options. A Trusted Mortgage Professional should guide you down the correct path so you can make an informed decision as what would be best for your situation. I'm here to help if you need it. Thank you and good luck!

yes it is all based on fico scores and equity or down payment if tou want to go private email me @ yourloanpartnerforlife@live.com linda

Yes there is a difference. The amount will primarily depend on the loan to value of the property versus the loan amount. I would be more than happy to explain in detail. Ray at www.raylewisonline.com

FHA Mortgage insurance is based on LTV Loan Term and Loan Amount. Private MI is based on those factors and your credit score. Private mortgage insurance is generally much cheaper than FHA insurance.

There are 3 loans that carry mortgage insurance: USDA, FHA and Conventional. Government loans of USDA and FHA are solely based on a percentage of the outstanding loan amount and are not FICO based. For FHA for the most part you are required to pay mortgage insurance for at least 5 years regardless of your loan balance unless you refinance or pay the loan completely. For USDA the same goes except you pay it for the lifetime of loan. There are several reasons that conventional Mortgage insurance is less expensive. 1) generally no up front mortgage insurance fee charged at closing like with government loans. 2) It is FICO and Debt ratio based so the less "risky" you are the lower your insurance rate will be. 3) it can generally can be dropped when you reach a 20% equity regardless of time so you are not forced to pay it for 5 years or more as in the case of government loans.