Comments on: FHA Announces BIG Changes to PMI

By: tylerosby

tylerosby — Wed, 14 Jan 2009 16:37:20 +0000

@Carole – With FHA loans, you’ll have two different types of private mortgage insurance. This isn’t a new addition, FHA has always required both.

1) Up front mortgage insurance policy (a.k.a. UF-MIP). This is added to the loan amount in most situations.

2) Monthly PMI. This is paid on a monthly basis to your mortgage lender and is included in your payment.

I hope this helps! Thanks for joining the conversation.

By: Carole McIntosh

Carole McIntosh — Wed, 14 Jan 2009 06:16:25 +0000

On my settlement statement I noticed an upfront MIP and I will also be paying a monthly MIP. Is this within the new guidelines?

By: tylerosby

tylerosby — Thu, 01 Jan 2009 04:37:25 +0000

@T – You’re absolutely right. The difficult thing about a blog is that the information is very time sensitive. I’m glad you brought this up for new readers hitting the site!

Just a re-mention of my comment under ‘Legal’ for the site:

“It goes without saying (but again, this is legal disclosure), the mortgage industry is a changing one. Facts & market information are a moving target and should be reviewed with the market conditions as you read (much of this information is archived from the past). We’d be glad to help you determine if things have changed.”

By: T

Wed, 31 Dec 2008 16:39:42 +0000

My understanding is that Congress overrode the FHA proposed rule of risk-based insurance premiums. As a result, everyone gets slapped with the 1.75% fee regardless of credit worthiness.

By: tylerosby

tylerosby — Thu, 19 Jun 2008 03:24:43 +0000

Roberta – No problem! It’s a story that’s not being told yet. I’d get used to credit risk based pricing (FICO score driven rates and costs) in the future. The mortgage industry is quickly learning that the FICO model has a great way of predicting future delinquencies!

Thanks for reading and please – keep up the encouraging comments!

By: Roberta Murphy

Roberta Murphy — Wed, 18 Jun 2008 13:54:00 +0000

Thanks for the detailed explanation of FHA’s new PMI guidelines. I have bookmarked it for future client reference.