“Monthly Mortgage Insurance Doesn’t Go Away on FHA Loans”  

“Monthly Mortgage Insurance Doesn’t Go Away on FHA Loans”

 

 

Hey Joe, Got a few questions about this paperwork the biggest thing is the PMI insurance and the PMI insurance upfront of 6000 some dollars and when does the monthly PMI go away since we are putting down over $60,000.

 

 

Yes, the clients are putting down over $60,000, however their credit scores are in the high 500’s. Unfortunately, this loan can’t be done as a conventional loan and the interest rate would be much higher than the FHA rate, which will be under 4%.

 

I let them know, in a year or two if they got their credit scores into the 700’s, then refinancing into a conventional loan to eliminate mortgage insurance would be the goal. I wish I knew what interest rates will be when they are ready, but it is a great goal.

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 1 commentJoe Petrowsky • December 15 2020 03:34PM

Comments

Good morning Joe. Sometimes your options are limited and costly but there is light at the end of the tunnel! Enjoy your day.

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) about 1 month ago

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