What is the FHA mortgage insurance premium?

1. What is mortgage insurance in accordance with FHA guidelines for mortgage insurance

* Mortgage insurance is an insurance policy that protects the lender or investor in the event of default.

Simply put, mortgage insurance will pay the lender the remaining balance if the insured loan fails to meet the deadline
- Buyers may ask what mortgage insurance does for you?
- The answer is quite simple, nothing
It is an instrument that protects the lender and usually allows borrowers to take out a loan for which they would not qualify without additional insurance

* Since this article is about FHA mortgage insurance, we will now go into more detail.

2. Mortgage insurance in advance

* Mortgage insurance premiums are usually shortened because UFMIP is always calculated based on the loan amount.

- All FHA mortgages in 2018 have 175 basis points in advance or 1.75% of the basic loan amount as a mortgage insurance premium in advance
- The only exception to this rule are houses located in the Indian lands, for more information, see section 248 of the FUD HUD 4000.1 FHA manual
- What does this mean for me and getting my FHA loan?
- The answer is not much
- This initial mortgage insurance premium can be paid out of pocket
- But most borrowers decide to increase this mortgage insurance premium to the total loan amount
- This is allowed according to FHA guidelines
- The choice of financing for this credit bonus will result in a slightly higher monthly repayment and a higher total cost of the loan

Remember that this is the most common way to borrow a borrower.

* You want to know more, contact The Gustan Cho Team at 262-716-8151 or send a text message for faster response.

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[CSMITTY]

Are you lending in Texas and are you accepting any DPA programs?

[harmeetsokhi]

Hi... Thanks for the informative video... Quick question... Does fha provide an insurance certificate to the borrower where all premiums are mentioned or is the closing disclosure the only place where the borrower will find these... Thanks

[thisandthat]

Got a question for you. My husband and I recently purchased an FHA home in my senior years, however I know I will not live long enough to pay off the debt.. So here is the question: how will my FHA mortgage insurance premium work upon death of spouse.