Because of my low savings, but high-income/high-credit-score scenario, I'm only able to get my first house by using an FHA loan (as far as I can tell.) I want to do a 3.5% down, 30-year loan for a house in the $500-600k range. I understand that the main draw back of FHA is the insurance(s) required.
According to the HUD website, FHA mortgage insurance exists because:
All Loan Terms (Greater than 15 years and less than or equal to 15 years):
LTV greater than 90% Annual MIP will be collected until the end of the loan term, or 30 years, whichever occurs first.
LTV less than or equal to 90% Annual MIP will be collected until the end of the loan term, or 11 years, whichever occurs first.
You also have to pay the 1.75% for any amount of loan at all LTVs.
I don't understand at which scale these percentages apply (yearly, monthly, entire loan?). I can figure out the mortgage payment, property taxes, and home owners insurance, but I need some help understanding how much the monthly insurance amount would cost, and how to end the need for the insurance either through refinancing, reaching these LTV benchmarks, etc.