Question about FHA loan

[Ja Rhule]

Does PMI automatically goes away after one reaches 22%? What is better 5% conventional loan or 3.5% FHA?

[Niner National]

I have 4.25% with no PMI through BB&T

There are plenty of mortgage calculators online where you can check whether 3.25% or 5% is better for you.

[pstall]

do the calcs as tensor said but it comes down to your payment affordability. focus on that moreso than all the other stuff.

[Panthro]

You are required to pay PMI for 5 years with an FHA loan....no matter the equity you have accrued

[Ja Rhule]

Looks like conventional is a way to go. I will save close to $170 a month

[charlotte49er]

Does PMI automatically goes away after one reaches 22%? What is better 5% conventional loan or 3.5% FHA?

It's been a while, but I'm pretty sure you have to notify the PMI Insurance holder when you reach that point. (Most people don't and technicaly are due a refund, but no one hardly ever does.)

But I've been out of the real estate game for around 6 years and things may have changed.

[MadHatter]

It's been a while, but I'm pretty sure you have to notify the PMI Insurance holder when you reach that point. (Most people don't and technicaly are due a refund, but no one hardly ever does.)

But I've been out of the real estate game for around 6 years and things may have changed.

I believe you are correct.....that you have to notify them and provide documentation/support (current appraisal on the property) to request PMI be dropped.

They won't jsut drop it automatically.....because they are not monitoring your property value or LTV.

[thefuzz]

Right now you have to pay it for a minimum of 5 years no matter what.

It's likely to go to 7 year minimum soon.

If you can go conventional do that.