What
about upfront mortgage insurance premiums?
Not exact matches
Also, because the federal government insures these loans, you have to pay an
upfront mortgage insurance premium (currently, the fee is
about 1.75 %) and annual
mortgage insurance (typically 0.85 % of the borrowed loan amount), which remains throughout the life of the loan (or until you can refinance the loan into a conventional
mortgage).
The bad thing
about an FHA ARM is that, like all FHA
mortgages, it requires borrowers to pay an
upfront mortgage insurance premium of 1.75 % of the loan amount (which is usually rolled into the loan, and you'll pay interest on it as a result).
The good news for new homebuyers is that FHA promised to reduce the
upfront mortgage insurance premium from the current 2.25 % to
about 1 % and the agency hopes that this helps offset the increased cost of the annual
premium for FHA borrowers.