Mortgage Insurance Premium (FHA Loan)

Why do I have to Pay the Mortgage Insurance Premium?

The MIP is a requirement from the government.  There are two parts to the Mortgage Insurance.

  1. The Monthly Mortgage Insurance
    1. This is a monthly charge and is calculated by multiplying the loan amount by .55% and deviding by 12/months             Example:  200,000 x .55%  = $1,100 / 12 months = $91.00/month
  2. The Mortgage Insurance Premium
    1. This is a one time charge that gets financed on top of the loan amount and is calculated by multiplying 2.25% to the loan amount.      Example:  $200,000 x 2.25% = $4,500  so the total loan amount after the MIP is financed is $204,500.00

For more info on MIP and FHA visit the link below

MIP AND FHA

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