4 Types Of Mortgage Insurance

4 Types of Mortgage 1 Private Mortgage Insurance ( PMI ) Only applies to conventional loan borrowers who put less than 20 % down . • UPFRONT COST : N / A • MONTHLY COST : Typically , $ 30- $ 70 per month per $ 100,000 in loan amount • REMOVAL : Can request removal when 20 % equity is reached , automatically falls off when 22 % equity is reached . 2 FHA Mortgage Insurance Premium ( MIP ) Lasts for life of loan with less than 10 % down ; ends after 11 years with 10 % or more down . • UPFRONT COST : 1.75 % of loan amount • MONTHLY COST : Typically , around $ 70 per month per $ 100,000 in loan amount • REMOVAL : Can remove monthly cost by refinancing to conventional loan when 20 % equity is reached . Insurance 3 USDA Mortgage Insurance Typically lower than other mortgage insurance costs . • UPFRONT COST : 1 % of loan amount • MONTHLY COST : Around $ 30 per month per $ 100,000 in loan amount • REMOVAL : Can remove monthly cost by refinancing to conventional loan after 20 % equity is reached . 4 VA Funding Fee • Can be paid at closing or wrapped into loan balance • Fee ranges from 1.4 % - 2.3 % of loan amount , depending on down payment . ● • Veterans with qualifying service related disabilities may be exempt from VA funding fee . fhalend