What does this mean?  Most FHA purchase loans are 30-Year Fixed rate loans with a LTV over 95%.  In this case, there will be an upfront fee of 1% (of the base loan amount) that will be financed into the loan and a monthly MIP based on a .90% factor.

 

For example:  A 30-Year Fixed with 3.5% down (96.5% LTV) means the monthly MIP will be at .90% of the base loan amount.  If the base loan amount is $100,000, the MIP would be $900 yearly and since its paid monthly the cost will be $75 a month, which will be part of the mortgage payment.

For more information, call Dan Palumbo at 732-797-0117.