“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
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