Can You Please Explain FHA Mortgage Insurance?
- Thread starter Melissa
- Start date
gnahc79
Fear me!
when MIP is removed, your mortgage payment goes down. However your property tax likely went up. Does your monthly mortgage statement show the breakdown? This is what I have (no MIP for mine)
Principal
Interest
Escrow (Taxes & Insurance)
Fees and Charges
Optional Products
Other
Total Paid
Principal
Interest
Escrow (Taxes & Insurance)
Fees and Charges
Optional Products
Other
Total Paid
Mike95060
Work In Progress
MIP = PMI?
If you are talking about Private Mortgage Insurance, it is supposed to go away when you have reached 80% loan to value ration on your home. There are some other ways it can go away too. I pay an extra $400/month PMI. When I reach 80% loan to value that part of my monthly payment goes away. I don't know why your payments have gone up. I guess it could be property tax. I thought that was fixed at the time you purchased your home tho? Are we talking about the same thing?
If you are talking about Private Mortgage Insurance, it is supposed to go away when you have reached 80% loan to value ration on your home. There are some other ways it can go away too. I pay an extra $400/month PMI. When I reach 80% loan to value that part of my monthly payment goes away. I don't know why your payments have gone up. I guess it could be property tax. I thought that was fixed at the time you purchased your home tho? Are we talking about the same thing?
It's not exactly totally fixed. There can be small incremental increases each year after original assessment. It home prices drop below your assessment rate, they have to reassess and lower your taxes for the time, although they go back up when values rise. Also, any voter approved local bond measures, for schools, hospitals, water districts, and whatnot, increase the various assessments added onto property taxes, causing them to increase.
mine has been cancelled and my mortgage payments are going up a bit. First time home owner so can you help me to understand in simple terms?
Appreciations.
Did you get a fixed rate loan? Hopefully you got a fixed rate loan.
Hmmm, here's some info on MIP, as opposed to PMI. https://themortgagereports.com
It appears that loans issued after 2013 with less than 10% down can't get rid of the MIP for the life of the loan. The only way to do so is to refinance.
It appears that loans issued after 2013 with less than 10% down can't get rid of the MIP for the life of the loan. The only way to do so is to refinance.
I agree with these two.
Removal of MIP should bring down payment. You likely hit your 5 year obligation, where you were paying about 1.25% of loan amount in insurance.
That Escrow line item should be telling (Not everyone will have a number in this line. It depends if you elected to pay tax/insurance on your own, or have it rolled into your monthly payment. If I were to guess, you do have an escrow payment). Taxes very likely have gone up for a couple of reasons:
1) Due to the increase in property values. Your assessed value of your home should now be sky high in comparison to when you purchased, but property taxes charged to you cannot increase by more than 2% per year.
2) Possibly extra taxes due to the extreme building and expansion in the area to fund the Riverfront development.
You've got a gem in that house. Awesome location to take advantage of the growth surrounding the riverfront.
Melissa
Peace,Love and Harmony
I did hit the 5 year obligation.
My home has increased over 50% in value. I'm still fixing it up so I am not interested in selling it now.
The growth right across the golden bridge is rather amazing.
I have it rolled over.
thanks. I think I understand!!!!!!
I am paying some extra taxes. No sweat.
My home has increased over 50% in value. I'm still fixing it up so I am not interested in selling it now.
The growth right across the golden bridge is rather amazing.
I have it rolled over.
thanks. I think I understand!!!!!!
I am paying some extra taxes. No sweat.