FHA Mortgage Insurance

FHA Mortgage Insurance



Mortgage mark let's talk about FHA mortgage insurance premiums or MIP so FHA has two types one is the upfront MIP that is 1.75 percent of your loan amount and the other is a monthly component that is part of your monthly mortgage payment so that monthly piece it's actually determined based on how much you put down and what type of loan term like let's say a 30-year versus a 15-year something to note the FHA will automatically you know kind of by default allow you to roll in that upfront MIP so that 1.75 percent will get added on to what's called your base flow them out like your normal loan amount and then they'll add that on and it becomes your final loan amount so understand you may be putting X dollars down and it may appear as though you're putting less down just because that 1.75 gets tagged on to the to the loan amount you can't pay cash for it upfront if you want but again most of times most folks will roll that into loan amount the monthly component it may be permanent it may not it just depends on the loan program now we can certainly answer more questions and address that for your specific example and we look forward to potentially hearing from you