FHA Loans
What is FHA mortgage insurance?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
FHA mortgage insurance has two parts: an upfront premium of 1.75% of the loan (financed into the balance) and an annual premium around 0.55% paid monthly. It protects the lender and is what allows FHA's low down payment.
On most FHA loans the annual premium lasts the life of the loan. Refinancing to conventional at 20% equity is the usual way to shed it. We'll show the total cost over your expected hold.
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