Home Buying in 85015>Question Details

Carlos, Home Buyer in Phoenix, AZ

Question on FHA Mortgage and PMI

Asked by Carlos, Phoenix, AZ Thu Oct 23, 2008

I pay an upfront 1.75% and pay in addition to my fixed payment amount; will the additional PMI be added financed in my payment until this is paid or should this be in additon to the payment (outside the loan document, such as HOA fees, Hazzard Ins. )

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Carlos,

As a mortgage lender who specializes in FHA loans, I can answer this question for you. On FHA loans you pay an upfront MIP premium which is financed into the loan. That represents 1.75%. You also pay monthly MIP using a factor of .55 What that factor means is if your mortgage balance was $100K and you multiplied that by a factor of .0055 your annual MIP would be $550.00 a year. That amount is then divided into 12 equal monthly MIP Payments ($45.83) a month. You will pay this as part of your payment as an escrow item by your lender. So it will be included in the mortgage Principal, Interest, Taxes and Insurance (both MIP and Hazard) (PITI). If you have more specific questions, please feel free to contact me further.
Web Reference: http://www.garymiljour.com
0 votes Thank Flag Link Fri Oct 24, 2008
Hi Carlos,

Not to split hairs, but on FHA loans, it's not called PMI, it's MI. But anyways....................
Your monthly MI will be included with your mortgage payment. On FHA loans, your monthly payment to your bank will include the following fees: Principal, Interest, Property Taxes, MI & Hazard Insurance (if your HOA does not pay for it).

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PAUL WELDEN
Buyer's Agent REALTOR
HomeSmart Real Estate
0 votes Thank Flag Link Thu Oct 23, 2008
Carlos,

PMI or "Private Mortgage Insurance" is not part of an FHA loan. MIP or "Mortgage Insurance Premium" is.
PMI is for conventional loans, MIP is for FHA.

FHA loans will require MIP but there are things that need to be further understood and further explained.

You need to discuss this with a mortgage lender.

If you are not working with a lender, I can provide you with a lender that can make this very easy for you to understand.

I am here to help you so don't be afrais to contact me.

Sincerely,

Stew Keene
stewkeene@yahoo.com
Web Reference: http://www.stewkeene.com
0 votes Thank Flag Link Thu Oct 23, 2008
Carlos,

I am not sure I understand your question. But the person who can better answer your question will be the lender that set up the loan for you or customer service at the bank who currently holds your lien.

I believe you are making payments in excess of what your monthly dues are, and are asking where does this gets applied. Check with your lien holder as they can apply it in several ways, depending on how you instruct them.

Good luck!
0 votes Thank Flag Link Thu Oct 23, 2008
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