FYI, you need mortgage insurance with both FHA and conventional loans, although FHA issues their own. If someone is paying $200 a month in mortgage insurance, someone is ripping you off. The most I've seen is $115, and it was a high dollar home, with a 95% loan. To make it go up into the $200 range, you'd have a scenario, I believe to where the borrower would be able to afford the down payment then to get a loan that big. There are conventional loans right now that'll be available for %500 down, and it is easier than FHA loans to qualify. The mortgage industry has changed alot since I first got in less than two years ago, and it is easy to get a loan unless your credit is really bad or you are really overextended on your debt. Also, I believe fha mortgage insurance is deductible the first year as a sort of point type cost. I might be wrong on that one though. Email me with any questions, and I can help anyone in Texas if you are looking to buy or refi.
That's my PMI payment. I had another mortgage on the table, where it was even higher (all other things being equal). This was a 95%ltv situation. I'm in NJ (metro NY)