FHA Mortgage Insurance Chart

FHA charges every borrower a mortgage insurance premium for their endorsement of the loan for the lender.  FHA does not lend money directly to the homebuyer, instead the FHA or Federal Housing Administration offers approved lenders coverage against the chance a borrower defaults on their loan.  Basically you are paying the Federal Government an insurance premium on behalf of the lender that holds your mortgage.  Just like you pay Allstate or Nationwide for car insurance, you pay Uncle Sam for mortgage insurance, the main difference being… YOU ARE NOT THE BENEFICIARY!  Only your lender benefits if you default.
Charlotte FHA loans come with 2 MIP fees… one upfront and one recurring annual fee that gets collected monthly when you make you payment.  Different factors affect what rate you will pay so check out the chart below and call me directly at 980-721-7478 if you have any questions!
Click on the image to see it full screen…
FHA MIP CHART

FHA MIP

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