Consumers who lack a 20% mortgage down payment should shop around for alternatives to FHA-insured loans, according to WalletHub, a consumer finance website.
In its 2014 Mortgage Insurance Report, released Tuesday, WalletHub observed that premiums for mortgage insurance from the FHA have roughly doubled since 2008. A consumer purchasing a median priced home ($212,100) in 2008 paid $9,210 in premiums during the first five years of the mortgage. Now, that consumer would pay $17,398.
By instead purchasing private mortgage insurance, those consumers could save $2,251 to $12,026 in just five years, WalletHub reported. In addition, the site reported that consumers with higher credit scores have lower PMI premiums.
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