Posted on: 31st Jan, 2011 05:41 pm
We are refinancing and I am looking at the UFMIP, I was under the impression that if we had 20% in equity we didn't have to pay this? Our broker is saying we do because our credit score is 656...help?
You broker is giving you an FHA loan. Every FHA loan has UFMIP. If you go the conventional route, you don't have to pay UFMIP or PMI.
Reading between the lines here.... the broker is putting you into fha since the up front risk premium for conventional = 3%
Also... if this is a 30yr loan, then you will have monthly pmi too
it might work out better to go conventional and eat the risk fee.
compare side by side both options.
Also... if this is a 30yr loan, then you will have monthly pmi too
it might work out better to go conventional and eat the risk fee.
compare side by side both options.
