Remember that FHA Monthly Mortgage Insurance must remain in place for at least 5 years (even if the LTV is 50%), but borrowers can eliminate MI after 5 years IF they can prove they have 22% Equity (their LTV is 78% or lower).
Remember too that FHA’s “Up-Front-Mortgage-Insurance” jumps up to 2.25% (of the loan amount) from the current level of 1.75% on April 5th (for case numbers ordered on April 5th or later). NOTE: Even if you do NOT have an accepted contract, we can still order case numbers as long as we have a designated address. So you can you save your borrowers 0.5% in Up Front MI by ensuring that we order case numbers before April 5th even if the contract is not fully ratified.
Finally, an increase in Up Front MI is not that serious in any case, as the Up Front Mortgage Insurance is just added on to the loan amount (fully financed). Over 30 years, it will hardly be felt.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167