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Mortgage Insurance Comparison

I was going over loan options with a home buyer the other day and realized that we spend a lot of time talking about mortgage insurance and when comparing loan programs for people the cost of the PMI really comes into play.  When I sat down to make this video I was simply going to go over the basic options and the costs associated with each.  The video turned into more of a why not to get a FHA loan, which wasn’t my intent.  However, the numbers don’t lie FHA is the most expensive loan out there right now.  Its the new “subprime”  funny that the government loan program who’s mission statement reads: “HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all . . . “ is the most costly of all the home financing options.  Anyways, we close tons of FHA loans and it is often the only option for people wanting to buy now; so enough said.  The chart outlines the basic’s reach out to me anytime with questions.

Conventional FHA Rural Development VA
% Down 3.5% Down Zero Down Zero Down
Mortgage Insurance Rate Per Year 5% 0.62% 1.35% 0.50% zero
10% 0.44%
15% 0.27%
20% Zero
Upfront Mortgage Insurance (Rolled into the loan) zero as depicted here. Optional. Call for details. 1.75% 2% 2.15%
Example: $150,000 loan Monthly/Upfront 5% $77 per month $169 per month / $2,625 upfront $62 per month / $3,000 upfront $3,225 upfront
10% $55 per month
15% $33 per month
20% Zero
Monthly MI Drops Off All 78% Loan To Value Never Never N/A
Mortgage insurance rates vary based on credit core, down payment, occupancy, loan term, etc… This chart gives an example for comparison, but doesn’t guarantee any particular rate or mortgage loan approval. Call (269) 598-3975 for details and a quote specific to your situation.

 

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