"MIP" Is Issued With FHA Loans Only |
(Anything posted on this page is subject to change without notice) |
The following are tables of the upfront MIP and monthly
mortgage insurance percentages for FHA home loans. |
For 15 year loans originating after April 1, 2010 |
Upfront MIP |
|
Down Payment |
|
Monthly MI |
|
|
|
|
|
2.25% |
|
4.99% or less |
|
0.50% |
2.25% |
|
5% to 10% |
|
0.50% |
2.25% |
|
10.01% or more |
|
0% |
For 30 year loans originating after April 1, 2010 |
Upfront MIP |
|
Down Payment |
|
Monthly MI |
|
|
|
|
|
2.25% |
|
4.99% or less |
|
0.50% |
2.25% |
|
5% to 10% |
|
0.50% |
2.25% |
|
10.01% or more |
|
0.50% |
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- A Calculation Example - |
You need to borrow $100,000, want a 30 year loan,
and will be putting down 5% of the selling price. |
To calculate the monthly Mortgage Insurance Premium fee,
you will first need to calculate your "Up Front Premium" .... |
|
| a. |
|
Look at the "30 year loan" table, and locate the
percentage of the up front premium you will pay. |
(In this example, it is 2.25%) |
|
| b. |
|
Multiply $100,000 (your loan amount ) by 2.25% |
| $100,000 x .0225 = $2,250 |
|
Your "Up-Front" MIP premium is $2,250
(It can be financed into your loan too!) |
Now you will calculate the amount of the
"monthly" premium you will pay.... |
| c. |
|
Multiply $100,000 (your loan amount ) by 0.50% |
| d. |
|
Divide $500 by 12 (months) = $41.67 |
| Your premium is $41.67 per month! |
|
• The "Up-Front" premium may be financed (included in the total loan!!)
• Condominiums DO NOT require payment of the "Up-Front" premium. |
Additional "Mortgage Insurance" Pages |
- Additional "FHA Loan" Pages - |
©Copyright Bart Austin - REALTOR®. All rights reserved. |
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