Posted on: 26th Mar, 2009 08:20 am
I just recieved a good faith estimate. I was told this was assuming putting the minimum 3.5% down. However the difference bewteen the loan amount and the purchase price is only 1.8% of the purchase price. Adding the difference bewteen the purchase price and loan amount to the PMI/MIP upfront cost does equal 3.5% of the purchase price. CONFUSED!
I am thinking about living with the inlaws to get to 20% and no PMI/MIP, but want to know what from that good faith estimate would I then avoid paying. I seem to think I would avoid the PMI/MIP upfront cost and also the $176 monthly payment from the bottom line mortgage payment.
thanks for the help
I am thinking about living with the inlaws to get to 20% and no PMI/MIP, but want to know what from that good faith estimate would I then avoid paying. I seem to think I would avoid the PMI/MIP upfront cost and also the $176 monthly payment from the bottom line mortgage payment.
thanks for the help
yes, fanatic, you can save yourself some mortgage insurance by garnering enough down payment money (though fha still has mip because it is by definition an insured loan).
you have the option of paying the mip in cash at closing rather than financing it. the traditional method is to finance it, as that allows you to bring less cash to closing.
you have the option of paying the mip in cash at closing rather than financing it. the traditional method is to finance it, as that allows you to bring less cash to closing.
what really has me confused is that the difference between the purchase price and the loan amount is only 1.8% of the purchase price when all this time I thought it had to be 3.5% MIN.
Assuming I go with a conventional loan with 20% down and dont have to pay PMI/MIP can I simply subtract the PMI/MIP upfront fee ($4200) and also the monthly mortgage insurance ($177/month) to get a good idea of what I owe at closing and per month?
Assuming I go with a conventional loan with 20% down and dont have to pay PMI/MIP can I simply subtract the PMI/MIP upfront fee ($4200) and also the monthly mortgage insurance ($177/month) to get a good idea of what I owe at closing and per month?
i'd say that's a very good way to look at it.
me too
My lender is trying to charge me monthly for PMI and an up front amount for MIP. is this right?
Also my up front MIP is added to the loan, but its also in the "cash required at closing" is this right?
I'm having the same problem. I'm looking at my loan and the PMI is included in my loan and they have me paying it in my closing cost. Why am I paying for it out of pocket and have it added to my loan.
As far as I know, you'll have to pay a portion of your MIP upfront and rest will be added to your mortgage.
I'm in the process of purchasing my new home with FHA loan. This lon requires a one time ins pmt at closing (UFMIP) as well as a your monthly MIP. The monthly pmt will be for the next 5 years or until the scheduled payments reduce the principal balance to 78% of the original amount borrowed. Hope it helps. Wish me luck with my escrow. :)
btw, MI for any loans without 20% down. MIP (mortgage ins. premium) added into your FHA loans, and PMI (private mortgage ins.) for conventional loans. :)
Wish you all the best! :)
OC, with an FHA loan the Monthly Insurance Premium (MIP) must be paid a minimum of five years.
It is scheduled automatically to be discontinued when the base FHA loan amount reaches 78% of the purchase price. If you made 3.5% or 5% down payment, that is usually after about ten years. You can tell how many years by looking at the Truth-in-Lending (TIL)document which shows you the APR and in the middle shows the monthly payment (without taxes and insurance escrows). You can count the number of yearly payment changes and that is how many years it will take to get to 78%. Every 12 months the MIP chnage gets lower and show in the TIL as another year passing.
GOOD LUCK!!!!!!!!!
It is scheduled automatically to be discontinued when the base FHA loan amount reaches 78% of the purchase price. If you made 3.5% or 5% down payment, that is usually after about ten years. You can tell how many years by looking at the Truth-in-Lending (TIL)document which shows you the APR and in the middle shows the monthly payment (without taxes and insurance escrows). You can count the number of yearly payment changes and that is how many years it will take to get to 78%. Every 12 months the MIP chnage gets lower and show in the TIL as another year passing.
GOOD LUCK!!!!!!!!!
Looks like my upfront mip charge is about 2.17% of purchase price. Upfront is added to the loan amount. Why is it showing as part of my settlement chargesif it is already in loan amount
On the HUD-I Settlement Statement it shows asa a charge in one place and a credit in another place. That is how it is correctly shown on the closing statement. It shows as a charge one place becasue all charges must be shown and accounted for. It shows as a credit in another place because it is included in the loan amount and you do not have to pay it twice.