My husband and myself bought a home in October of 2008, and unfortunately did not consult a lawyer to make sure if everything in our closing paperwork was correct.
Is it against the law that our mortgage company is charging us for mortgage insurance even though we put well over 20% down on the home?
FHA loans always have upfront mortgage insurance and monthly mortgage insurance. The only time they don’t is if you do a 15 yr. term with at least 10% down. If you did a 30 yr., you’ll have mortgage insurance.
Hi Millie,
No, it is not against the law. FHA loans require mortgage insurance regardless of how much money you put down unless you do a 15 year fixed with at least 10% down. You may want to look at refinancing your loan from FHA to conventional to eliminate the monthly mortgage insurance.
References :
I’m a mortgage banker/broker
http://www.fhamortgagesdoneright.com
FHA loans always have upfront mortgage insurance and monthly mortgage insurance. The only time they don’t is if you do a 15 yr. term with at least 10% down. If you did a 30 yr., you’ll have mortgage insurance.
References :
I’m a loan officer
The first 2 answers are correct, you will also need to keep the mortgage insurance for at least 5 years unless you refinance. Whomever put you into an FHA loan with 20% down didn’t know what they were doing.
References :
CA Mortgage Loan Officer