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Is it legal to have to pay mortgage insurance for the life of the loan?

by freddyplinn592 from Memphis, Tennessee. Apr 23rd 2014 Reply


Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#1 ranked lender in Florida - 2,242 contributions

Yes, FHA requires it now.

Apr 23rd 2014
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

No.. not illegal.. Most all FHA loans initiated today say the MI is for the life of the loan. The only way to remove it is to refinance into a different loan product, or pay off your mortgage. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Apr 23rd 2014
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Jarrod McOmie (Jarrod)
#13 ranked lender in Utah - 120 contributions

Unfortunately it is not only legal, FHA requires it for loans with high loan to value ratios. If you are concerned about having Mortgage Insurance for the life of the loan, look into a Conventional loan. Generally, you are able to remove the MI once you have reached 80% LTV. Best of luck!

Apr 23rd 2014
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Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 226 contributions

Unfortunately under FHA new guidelines it is required. One thing I tell my clients is that if your current credit does not qualify you for a conventional loan & you have to do an FHA loan, then work on getting your credit scores increased so within a year or so you can refinance your property into a conventional loan without lifetime mortgage insurance.I am located here in TN give my office a call if you would like to discuss your options.

Apr 24th 2014
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Mike Silkworth (msilkw_195_870)
#31 ranked lender in Michigan - 527 contributions

Yes - and as a matter of fact, FHA charges it for the life of the loan.

Apr 24th 2014
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Jericho Cherry (Jerichocherry)
#56 ranked lender in Virginia - 1,107 contributions

Everyone is correct on this one. Sorry but that's the way it is.

Apr 24th 2014
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