Here's how you can avoid paying mortgage insurance premium on an FHA loan.
- Patrick Stuckwish
- Jan 3, 2023
- 1 min read
Do you know how to avoid paying the annual mortgage insurance premium for your FHA-insured loan? Low down payment and credit score requirements, coupled with high demand means that many borrowers are not eligible for FHA and require a conventional loan. To qualify for an FHA home loan with a low down payment, borrowers must pay a 1.75 percent annual premium on their mortgage insurance policy (MIP) at closing. However, there is one exception to this rule: If you close on your refinance before your original mortgage has paid off in full and then pay off that loan early, you can avoid paying a single MIP premium.
ng a single MIP premium.
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