News - FHA mortgage insurance reduced Jan 8th, 2015! FHA mortgage insurance lowered by .5% a year, starting Jan. 26th, 2015.
Calculate your new lower FHA mortgage insurance payment with updated FHA mortgage insurance calculator. Learn more about mortgage insurance reduction below.
FHA Mortgage Insurance Calculator - Calculate the up-front FHA mortgage insurance premium (FHA MIP or UFMIP)
and the monthly FHA mortgage insurance (FHA MMI). View current FHA loan requirements based on loan amount, loan to value
and mortgage amortization terms with this FHA mortgage insurance calculator
based on must recent HUD mortgagee letter 2013-04 which updated FHA mortgage
insurance on April 1, 2013. Updated HUD mortgagee letter 2015-1 - "Reduction of Federal Housing Administration (FHA) annual Mortgage
Insurance Premium (MIP) rates"
The Federal Housing Administration (FHA) was created to help increase homeownership in America by allowing
homebuyers to purchase a home with a low FHA downpayment of 3.5% vs. traditional 20% downpayment.
In order to encourage banks and mortgage lenders to provide financing these low downpayment mortgages, FHA provides
mortgage insurance to help protect the lenders from the average 3-9% of borrowers who
default on mortgages where lenders are forced to foreclose.
FHA mortgage insurance are fee's collected upfront and/or monthly from borrowers which are used to help protect
mortgage lenders (and bank depositors money) from serious financial losses due to defaults on these higher risk mortgages with down payments of less than 20%.
If there was no FHA mortgage insurance it is very likely that most home buyers would be required to put a downpayment
of 20% or more when buying a home and this would lower homeownership in America and lower home prices.
Upfront FHA Mortgage Insurance Premium (FHA MIP)
The Federal Housing Administration charges borrowers an upfront mortgage insurance premium (FHA MIP) on FHA mortgages. This upfront
mortgage insurance premium is based on a percentage of the FHA loan amount and is dependant on the type of mortgage.
Purchase FHA loans and FHA refinance mortgages - the current FHA mortgage insurance premium requirement is 1.75% of the mortgage amount
FHA to FHA Streamline Refinance - the upfront FHA MIP requirment for these loans is discounted.
FHA MIP - maybe financed into the FHA loan amount or paid in cash at time of loan closing.
If you payoff a FHA mortgage within the first 5 years you may received a prorated portion of the FHA mortgage insurance premium / FHA MIP refund
Calculate your upfront FHA mortgage insurance premium / FHA MIP using the above FHA MIP calculator or use our FHA mortgage payment calculator
to calculate your full FHA monthly mortgage payment with principal, interest, taxes and insurance.
FHA Monthly Mortgage Insurance (FHA MMI)
Monthly mortgage insurance or MMI is a monthly prorated mortgage insurance which is included in FHA mortgage payments.
The mortgage insurance is part of the PITI mortgage payment
calculation for FHA loans.
Below are some details of current monthly FHA mortgage insurance.
All FHA 30 year mortgages and FHA 15 year mortgage regardless of loan to value require FHA monthly mortgage insurance.
FHA Mortgages over $625,500 have a slightly higher FHA mortgage insurance the mortgage amounts under $625,500.
15 year mortgages have a lower FHA MMI, monthly mortgage insurance than 30 year mortgages.
Discounted FHA MMI is provided on FHA 15 year mortgages with loan to values from 78.01% - 90%
FHA streamline refinance mortgages of FHA loans originated before May, 2009 have a discounted monthly mortgage insurance of .55% per year.
FHA Mortgage Insurance - is managed by the federal government's, Department of Housing and Urban Developement (HUD)
Federal Housing Administration (FHA) with the primary goal of increasing homeownership vs. creating profits.