Posted on: 17th Apr, 2010 09:35 pm
I am purchasing a house for 265000 with a down payment of 20,000. I have applied for an FHA 30 years fixed which has been approved with a 5.125 interest rate. The bank is asking to pay upfront MIP (2.25% on 245K) and also asking me to pay monthly PMI that will be added to my mortgage payment each month. However, the appraisal value of the house that was done by the bank came out to 370000.
Would it be ok to ask my bank to remove MIP and PMI or at least one of them?
Would it be ok to ask my bank to remove MIP and PMI or at least one of them?
Welcome malick,
As far as I know, FHA requires a one time insurance payment at closing (UFMIP) as well as a monthly mortgage insurance premium. The monthly insurance premium will continue for 5 year or until the scheduled payments reduce the principal balance to 78% of the original amount that you've borrowed.
As far as I know, FHA requires a one time insurance payment at closing (UFMIP) as well as a monthly mortgage insurance premium. The monthly insurance premium will continue for 5 year or until the scheduled payments reduce the principal balance to 78% of the original amount that you've borrowed.