The Hidden FHA Loan Cost That Lasts Forever
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Wait, so if the conventional PMI goes away, why would FHA, which is supposed
to be helping people, saddle them with a cost that lasts forever? That seems wrong.
It feels that way, but it's how the government protects itself against the higher risk it's
taking on. Yeah. And here's the kicker. If you're like most FHA buyers and you
put down less than 10%, that annual insurance premium, the MIP,
it is permanent. For the entire life of the loan? For the entire life of the loan.
It never drops off. Wow, okay, that is a huge financial anchor.
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