1. Can I pay just monthly or just 1 time mortgage insurance with my FHA loan?
All FHA loans have 2 kinds of mortgage insurance – up front and monthly. The cost of this insurance has changed frequently over the last 15 years. As of January 26, 2015 the cost of up front MI is 1.75% of the base loan amount (defined as the purchase price less the down payment). For 30 year loans, monthly mortgage insurance is based on a factor of 0.85% annually paid monthly for loans with less than or equal to 5% down and 0.80% for loans with greater than 5% down. The cost is lower for 15 year loans. FHA monthly mortgage insurance cannot be cancelled unless you make at least a 10% down payment.