PMI vs. FHA Mortgage Insurance: Know the Difference

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PMI and FHA Mortgage Insurance: They Aren't the Same Thing!

If you have a mortgage with less than 20% down, you may be paying mortgage insurance. But did you know the rules for removing it can be very different?

With many conventional mortgages, Private Mortgage Insurance (PMI) can eventually be canceled when certain requirements are met.

With FHA financing, Mortgage Insurance Premiums (MIP) generally remain for 11 years or the mortgage term, depending on the original loan-to-value ratio and applicable FHA rules.

And here's something worth knowing:

If you have an FHA mortgage, refinancing into conventional financing might offer an opportunity to eliminate MIP. But that doesn't automatically mean refinancing is the right decision!

Your current interest rate, available equity, closing costs, and total monthly payment all matter.

Sometimes keeping your existing mortgage is the better financial decision.

For more information Click Here

Robert (Rob) Clark | Home Loan Consultant
Firestone Financial Group
Cell: (209) 227-7745
Cell: (559) 476-9279
rbrtclark53@gmail.com
www.RobertClarkLoans.com

4364 Town Center Blvd, Suite 209
El Dorado Hills, CA 95762

NMLS #357788 | Firestone Financial Group NMLS #301522
CA DRE #01148307 | Equal Housing Lender

FHA MIP duration depends on case-number assignment date, original loan-to-value ratio, mortgage term, and applicable FHA guidelines. Refinancing is subject to qualification, rates, costs, and loan program requirements. Savings are not guaranteed.