Wednesday, March 28, 2012 - Article by: Jim Marcinkowski - Inlanta Mortgage -
Although the concept of insurance protection is similar, there are distinct differences between private mortgage insurance (PMI) and FHA mortgage insurance premiums (MIP) that should be considered when deciding which loan program suits your financial needs. PMI is private mortgage insurance that typically is available in a variety of premium plan structures and offers payment options that can usually be tailored to the borrower's needs. There are a number of private mortgage insurance providers and each structure their offerings a bit differently. MIP is the government-administered mortgage insurance program for the FHA that has certain restrictions and has undergone a number of changes recently. Read more about new developments regarding MIP to FHA Mortgages & FHA Streamline Refinance fee reductions here. Major differences between these insurance programs include: ?no upfront mortgage premium required with PMI while an upfront MIP is required. ?PMI can be canceled after a stated LTV is achieved and favorable payment history has been established, while MIP is paid for a minimum of 5 years regardless of LTV. There are many more differences that you should be aware of as you decide which loan program suits your financial needs. Contact an Inlanta Mortgage loan professionalat 239-936-4232, to discuss your options and ensure that you select the program that is right for you! Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.
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