FHA Loans, Mortgage Insurance Premiums, and My Extra Income

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FHA Loans, Mortgage Insurance Premiums, and My Extra Income

Some good news has come up in the last couple of weeks, as Ive happened upon a temporary job for the next couple of months. Since were buying a house, we looked at what we can do with the extra income.

For background, were getting a 30-year fixed rate FHA mortgage for our town house. This means that our interest rate will remain the same through over the life of the mortgage. Since its an FHA loan, however, there are some differences vs. conventional loans.

FHA loans and the Mortgage Insurance Premium

With a conventional loan, if you make a downpayment of less than 20% of the purchase price, you either have to pay for Private Mortgage Insurance (PMI), or take out a piggyback loan to make up the difference. With an FHA loan. if your downpayment is less than 20%, you have to pay a Mortgage... http://insurance-auto.ucoz.com/news/premium_mortgage_insurance/2013-06-04-2935