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Dan 
LSU Fan
New Orleans
Member since Dec 2006
2068 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 1:17 pm to Waffle House)
quote:
So is this saying that if you put 10% down, once you hit the 78% you can cancel your PMI payments?
That's how I read it.
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Bmath
LSU Fan
TX
Member since Aug 2010
2877 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 1:26 pm to C)
Would it be possible to refinance with another lending institution once you hit that 22% down mark?
Seems this would get money back faster to FHA and then make money for lending companies that originally would not have qualified the buyer.
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Newbomb Turk 
Navy Fan
perfectanschlagen
Member since May 2008
9824 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 1:32 pm to Bmath)
I read something recently that said even if you do hit the 78%, you cannot get rid of FHA PMI for AT LEAST 5 years.
Your alternative at that point is to refinance.
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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
17392 posts
 Online
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 1:56 pm to Newbomb Turk)
quote:
alternative at that point is to refinance.
Yes so most people will do that to save money in the long run. Banks will make money through the loan processing. As will appraisers, title companies and lawyers...
Struggling homeowner gets the shaft.
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yellowfin 
Illinois Fan
Paige is Pretty
Member since May 2006
51798 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 2:04 pm to C)
quote:
Yes so most people will do that to save money in the long run.
unless the interest rates start going up again
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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
17392 posts
Online
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 2:15 pm to yellowfin)
Is PMI based on monthly balance? For some reason I thought it was a flat fee based on initial loan ammount.
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Newbomb Turk
Navy Fan
perfectanschlagen
Member since May 2008
9824 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 2:16 pm to C)
quote:
flat fee based on initial loan ammount.
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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
36333 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 2:21 pm to Newbomb Turk)
Did they change a law this year about how much you can deduct form Mortgage insurance as well? I was only able to deduct 50% of the amount I deducted last year.
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Newbomb Turk
Navy Fan
perfectanschlagen
Member since May 2008
9824 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 2:29 pm to Catman88)
As far as I know, they extended it 100% for two years, i.e., you get the deduction for 2012 and 2013. The Mortgage Interest Statement I got from my lender didn't even show it this year as there was no "box" for it due to the late amendment to the Internal Revenue Code. But, I looked at my on-line amortization and saw that it was the same as last years.
The disparity in yours could be due to a number of factors, including when you took out your loan. The rules might have been different.
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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
17392 posts
Online
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 2:49 pm to Newbomb Turk)
well if that's the case, then this is very fricked up. Why not just increase the rate to reflect what the percieved risk is instead of an arbitrary PMI number? I know, I know: fairness.
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Hu_Flung_Pu 
USA Fan
In the handicap stall
Member since Jan 2013
1293 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 3:43 pm to C)
My mortgage lender advised not to do FHA do to some stuff like this. Luckily we were able to do a RD loan.
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BoobieWatcher
Yale Fan
Team BOOB
Member since Jun 2010
4534 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 4:35 pm to Siderophore)
This post was edited on 2/26 at 2:15 pm
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Hu_Flung_Pu
USA Fan
In the handicap stall
Member since Jan 2013
1293 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 6:52 pm to BoobieWatcher)
check to see if the area does rural development (rd ) that's the best option. 0 down and no pmi premium. fha requires the premium and 3.5 down. you have to factor in closing (~7000) better to have closing negotiated and use the extra towards appliances
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TigerDeBaiter
LSU Fan
Member since Dec 2010
2373 posts
Online
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 6:58 pm to C)
I think RD did something similar a while back. Doesn't surprise me.
Eta: this is what I remembered reading, based on some other responses, maybe it didn't happen? LINK
This post was edited on 1/31 at 7:13 pm
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jojothetireguy 
New Orleans Saints Fan
Live out in Coconut Grove
Member since Jan 2009
8450 posts
Online
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 7:27 pm to TigerDeBaiter)
I'm actually in the process of buying and selling. We looked at an FHA loan but the pmi was going to be over 200 extra per month added to the mortgage. We both have excellent credit, mine was 780 and above and my wife's is over 800. We cannot do an rd loan and have to look at conventional with a higher rate. Pmi pisses me off because we are basically paying for the past lenders screwups. They gave loans to people they shouldn't have and got bitten in the arse because of it and now responsible people have to pay more because of it.
I think the way the new rules will lay out is that it will not affect anyone who buys before April. The rate depends in the amount you put down and is a percentage of the loan amount. 97-95 down = .9
95-90 = .78, 90-85 = .52 and 85-80 = .32
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tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
4435 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 7:43 pm to Waffle House)
quote:
So is this saying that if you put 10% down, once you hit the 78% you can cancel your PMI payments?
just got a FHA loan in June. Got a letter a the first of the year (required by law it said) that states that i must keep PMI for a minimum of 5 years, that it will automatically be removed once my scheduled payment hit the 78% threshold (as long as ii have good payment status) and that if i pay extra payments and hit the 78% threshold it was my responsibility to ask for the insurance to stop.
Also, getting an appraisal showing the value has increased no longer is valid for helping to remove PMI insurance.
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AbsolutTiger
LSU Fan
Baton Rouge
Member since Sep 2006
4139 posts
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 7:44 pm to Golfer)
quote:
And this kills any momentum the housing market had, IMO.
I agree. A $200 premium for the life of the loan is ridiculous.
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TigerDeBaiter
LSU Fan
Member since Dec 2010
2373 posts
Online
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 7:52 pm to jojothetireguy)
I agree it's gotten a little ridiculous. I think they should tier it based on other cretieria like credit score, debt to income ratios, and even savings. The other thing to consider I guess is how much a jump in mortgage rates would increase your interest payments vs the pmi. In other words, waiting and saving to avoid the pmi and risk a rate increase or just take the pmi in the arse for now. 
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jojothetireguy
New Orleans Saints Fan
Live out in Coconut Grove
Member since Jan 2009
8450 posts
Online
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 7:59 pm to TigerDeBaiter)
Yeah basically you can get an FHA loan at a lower rate with higher pmi or a conventional with higher rate and lower pmi. Putting 5% down on a conventional would make our note over 100 less a month than if we do an FHA with the lower interest rate
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TigerDeBaiter
LSU Fan
Member since Dec 2010
2373 posts
Online
| re: FHA: Insurance premiums for mortgages will no longer be phased out at 78% (Posted on 1/31/13 at 8:08 pm to jojothetireguy)
Seems like a no brainier to go conventional then.
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