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FHA Mortgage Insurance

FHA Mortgage Insurance programs are easier to qualify and there is also very low down payment requirement. Moreover, such loans cost you less than conventional forms of mortgages and the premiums you pay monthly may also be tax deductible. Though recent policy changes have increased the premium rates, FHA loans are still a hope for many people with low income and less-than-perfect credit score. With the Federal Housing Administration assuming full responsibility to protect the amount lent to a borrower, a lender has no problem in underwriting a loan following the guidelines of HUD.

FHA Mortgage Insurance Premium

The premium amount paid to FHA is collected at mutual mortgage insurance fund. This fund is used to fulfill claims of lenders in the event of a mortgage default. The borrower needs to pay an upfront MIP and many annual premiums calculated monthly. Use a calculator to know how much is required in monthly insurance payment. The premium needs to be paid for at least five years if one has a loan with more than 15 years term. Termination of MIP is automatically activated once loan-to-value ratio reaches 78 percent. However, this cancellation is not possible with a loan not insured with mutual mortgage insurance.

FHA Mortgage Insurance Refund

The cumulative mortgage insurance premiums that have not been used by FHA in claim settlement may be available for a refund. This is the amount that HUD owes to a borrower who has never defaulted on his monthly payment. To help borrowers know if they qualify for a reimbursement under certain rules of the program, HUD has made available several resources on its website. FHA mortgage insurance refund chart, calculator and refund processor are among these resources. One can also find guidelines and other information that can help you learn more about FHA insurance refund program.

FHA Mortgage Insurance Calculator

It is a calculator that helps you calculate the amount of annual insurance premium depending on the loan program you have chosen. The percentage for upfront MIP usually varies between one and three percent. The rates for the annual MIP are determined according to the loan program. Soon FHA is going to increase its premium rate for major single family loan programs.

One has to take these factors into account while deciding on a loan option. A calculator helps you get an estimate of what a mortgage would cost you during the entire loan term. For even better suggestion, contact an FHA-approved lender. You may find these lenders in almost all US states including Arizona, Alaska, Texas, Illinois, Maryland, Minnesota, Ohio and Virginia.

For more information on FHA mortgage insurance removal, application, LIHTC, agreement, benefits, certificate, coverage, duration, death, disclosure, drop, schedule, types, write off and more, visit the HUD website.


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