FHA Mortgage Insurance Premiums – How to Calculate

In this episode, we offer an in-depth analysis of FHA (Federal Housing Administration) loans, particularly highlighting the aspects of mortgage insurance premiums. Created during the Great Depression, FHA loans facilitate homeownership with a minimum down payment of 3.5%.

It's clear that FHA loans pack a lot of value, especially for those stepping into homeownership. The mortgage insurance premium, both upfront and monthly, might seem like an extra step, but it's really about making the loan sustainable in the long haul. It's all about balance, right? Paying a bit now to save more down the line. If you're thinking of selling or refinancing in a few years, you might get some of that upfront premium back.

Whether you're a first-time buyer or looking to refinance, understanding these nuances of FHA loans is key.

In this episode, you’ll learn:

• Upfront and monthly mortgage insurance premium
• Are you selling or refinancing in a few years?
• Unique nature of FHA mortgage insurance
• Cancellation scenarios of mortgage insurance on FHA loans

Must-listen moments: 

[00:01:15] Overview of FHA loans and their history

[00:02:30] What mortgage insurance premium means for FHA loans, including both upfront and monthly premiums

[00:03:45] How to calculate the upfront premium

[00:05:20] How the upfront premium affects the total loan amount and its long-term implications

[00:06:10] How the monthly mortgage insurance premium (MIP) is calculated and its effect on monthly payments

[00:07:55] Cancellation of FHA mortgage insurance

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Jennifer Hughes Hernandez, Legacy Mutual Mortgage - Equal Housing Opportunity Lender NMLS #514497 

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📌More Helpful Content: ▶️The Myths and Truths About Credit Inquiries: https://youtu.be/d_RQJnTsVPE ▶️Why You Should Use A Local Lender: https://www.youtube.com/watch?v=shkijZmEonA ▶️How to Buy A House With Low Income: https://www.youtube.com/watch?v=OcyjWe0snWU ▶️Using Rental Income To Qualify For A Mortgage: https://www.youtube.com/watch?v=kv0eXzl1YUo

To contact us visit www.loanwithjen.com Equal Housing Opportunity Lender NMLS# 514497 Click Follow on your podcast app and share the show with a friend who’s thinking about buying a home in the Houston, TX area. Resources mentioned in the episode:

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