How are FHA premiums determined?
FHA mortgage insurance is paid in arrears and the amount paid this month is for last month’s coverage. When the payoff demand is prepared, the monthly amount of the FHA Mortgage Insurance included in your monthly payment is collected for the current month, which will be paid next month; if the current month’s premium has not been paid at the time the payoff demand is generated, that monthly premium will be collected; and, if the through date on the demand is in the next month, that monthly premium will also be collected. Accordingly, the demand could collect between one and three monthly premiums.
Related Questions
- Under FHAs Risk-based premium structure, what is the range of upfront mortgage insurance premiums that you will charge?
- Does HUD anticipate requesting statutory changes to allow FHA to increase the risk-based premiums limit above 225?
- What is available on the FHA Connection with respect to monthly mortgage insurance premiums?
