Can I roll the mortgage insurance premium into the loan?

Yes, sometimes what you can do is to finance the mortgage insurance premiums into the mortgage loan by rolling it into the total mortgage amount. This is when you opt not to pay an up-front mortgage insurance in cash when you settle the loan. You can do this with an FHA mortgage insurance.

You see, with an FHA loan, you can either pay monthly premiums, pay the premiums upfront or roll it into the mortgage amount. The upfront mortgage insurance premium will usually be about 1.5% to 1.75% of the amount of the loan, regardless of what your credit score is.

If you are able to pay this premium up front, we suggest that you do so. Rolling your mortgage premiums into the loan amount will come out more expensive in the long run, since your insurance premiums will also be charged with interest.

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