Financing in 48146>Question Details

Jimik009, Home Buyer in 48146

FHA up front funding fee and up front mortgage insurance on IFW?

Asked by Jimik009, 48146 Tue Jun 15, 2010

Please help! We have a been pre-approved for an FHA loan with the amount closing closts based on at $206,222. I was told by the lender that this amount reflects the purchase price ($209,000) minus our down payment, multipled by 2.25% for the 'up front funding fee" I just read on another site that this is the same as up front mortgage insurance. Should this appear in the breakdown (we have a Initial Fees Worksheet) if it's already rolled into the amount of the loan?? it seems like we're paying ths same thing twice, if this is in fact the same thing. THANKS!!

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Lew Corcoran’s answer
On the new Good Faith Estimates, the Upfront Mortgage Insurance Premium (UFMIP) can be rolled into the loan. And, in your case, most likely it is. However, the Dept. of HUD now requires the UFMIP be disclosed as a cost in a separate line item - even if it is rolled into the mortgage. So, it appears that you are paying it twice. In reality, you are not.

All costs, not matter who pays them and regardless of whether or not they are rolled into the mortgage, must be disclosed on the Good Faith Estimate as separate line items.
0 votes Thank Flag Link Tue Jun 15, 2010
It is the same thing. The breakdown is confusing so don't feel bad. To find you new loan amount take the purchase price $209,000 minus 3.5% down = $201,685 plus 2.25% UFMIP - Up Front Mortgage Insurance Premium = your new loan amount of $206,222
0 votes Thank Flag Link Tue Jun 15, 2010
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