| Author |
Previous Topic | Next Topic |
|
gizelle@newerafi
24 Posts |
 Posted - 05/22/2008 : 10:02:07 AM
|
Hi Everyone,
As far as i understand for a 30 years fix program here is how much MI my client should pay:
1- up front MI (1.5% of the loan amount)
2-monthly MI (0.5%) for 5 years
please let me know if my information is correct. THANK YOU. |
|
hapa haole
11 Posts |
Posted - 05/22/2008 : 10:13:06 AM
|
| 1.5% up front (or financed by adding to the loan amount). The monthly of 0.50% will continue for a minimum of five years but will not be cancelled until the LTV reaches 78%. The 78% LTV is based on the lesser of the original sales price or appraised value at origination. |
|
|
hapa haole
11 Posts |
Posted - 05/22/2008 : 10:15:11 AM
|
| Missed the heading about 70% LTV so yes, the MMI should be for five years only. I do not believe that the MMI ends automatically though. Maybe someone else will jump in with that answer. |
|
|
gizelle@newerafi
24 Posts |
Posted - 05/22/2008 : 10:15:55 AM
|
quote:
Originally posted by hapa haole
1.5% up front (or financed by adding to the loan amount). The monthly of 0.50% will continue for a minimum of five years but will not be cancelled until the LTV reaches 78%. The 78% LTV is based on the lesser of the original sales price or appraised value at origination.
thanks for the reply, but since i am refinancing for this client snd he is already at 70% LTV does he have to pay the monthlty MI? |
|
|
djorge44
1848 Posts |
Posted - 05/22/2008 : 10:19:25 AM
|
| YES |
|
|
djorge44
1848 Posts |
Posted - 05/22/2008 : 10:20:02 AM
|
| Unless you do a 15 year, then no monthly if he is 89.99% LTV or below. However 1.5% is still required |
|
|
hapa haole
11 Posts |
Posted - 05/22/2008 : 10:21:25 AM
|
| Yes, as with any insurance policy, which is what FHA does, you have your initial premium (MIP) and your on-going payments (MMI). Only a loan term of 15 years or less will allow the waiving of the MMI if LTV less than 90%. |
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
