FHA vs. Private Mortgage Insurance Fees

by Peter G. Miller
July 17th, 2007
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Under the FHA program borrowers pay an insurance fee for FHA converage equal to 1.5 percent of the loan balance at closing plus .5 percent (divided by 12) on the remaining loan balance for each month the loan is outstanding.

But how would insurance fees look if you bought with private mortgage insurance (MI)? There’s now an online calculator to spell out various payment options.

The PMI group an an online calculator that provides a lot of useful information.

For instance, the calculator will show the loan’s amortization after three years, the monthly cash payment for principal and interest — and the after-tax cost, and the monthly cost for MI coverage.

All in all, a handy and useful online tool.

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This entry was posted on Tuesday, July 17th, 2007 at 2:39 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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