http://www.inlandempirerealestate.kwrealty.com
Joan Patterson, B.A, G.R.I., Realtor, License #01431647
It has been brought to my attention that FHA buyers will start paying MIP (Mortgage Insurance Premium) for the life of the loan regardless of the value of their home in 5 years. It used to be that if after 5 years the home value reached 22% equity in their home they could have the MIP insurance removed. Well, this could all change.
It's in the works now which is bad for FHA borrowers. But, here is the deal, if your credit scores are high enough and you can get an Conventional loan, then go for the one that is 5% down. That way, you will save money instead of paying the MIP. Which by the way if you were making a purchase of $400,000 you would save $323 a month if you did not use FHA.
If I can help you with any real estate information, please don't hesitate to contact me direct at 951-204-1864. Looking forward to helping you!
Joan
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