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FHA MORTGAGE INSURANCE
FHA insured mortgages require mortgage insurance. Mortgage insurance is a policy
that protects lenders against some or most of the losses that result from defaults
on home mortgages and it's required primarily for borrowers making a down payment
of less than 20%.
The Mortgage Insurance charged is .5% per year of the loan amount and is charged to the
homeowner each month. In addition, FHA charges an upfront mortgage insurance premium
of 1.5%.
FHA's monthly mortgage insurance payments will be automatically terminated when these
conditions occur:
- For mortgages with terms more than 15 years, the annual mortgage insurance premiums will be canceled when the Loan to Value ratio reaches 78%, provided the mortgagor has paid the annual premium for at least 5 years.
- For mortgages with terms 15 years and less and with Loan to Value ratios 90% and greater, then annual premiums will be canceled when the Loan to Value ratio reaches 78%, regardless of the amount of time the mortgagor has paid the premiums.
- Mortgages with terms 15 years and less and with Loan to Value ratios of 89.99% and less will not be charged annual mortgage insurance premiums.
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FHA HOME LOAN
FHALoan.com is a private mortgage company specializing in fha home loans and is not associated with the federal government or HUD / FHA.
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