Home Buying in 07304>Question Details

Marie Sander…, Home Buyer in 07306

Will my closing cost be lower with Homepath financing than FHA financing since there is no upfront Mortgage Insurance Premium?

Asked by Marie Sanderson, 07306 Mon Mar 12, 2012

Will my closing cost be lower with Homepath financing than FHA financing since there is no upfront Mortgage Insurance Premium? Anyone have experience with closing cost for home path loans and how they compare to other financing options?

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Answers

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The answer is no. Upfront Mortgage Insurance is actually added to the loan amount that you borrow. It isn't money that you would have to come to closing with. The big difference is the monthly MIP. You would have this added to your monthly payment where there usually isn't a monthly MIP payment with a Homepath mortgage.

Where you do save in closing costs is that Homepath usually doesn't require an appraisal and every other type of financing does.

Tony Nardini 732-740-4107
1 vote Thank Flag Link Mon Mar 12, 2012
Hi Marie,

Tony is correct about the upfront Mortgage insurance premiums. FHA is pricing itself out of the market with it's new Upfront MIP being raised to 1.75% and the monthly increase to a factor of 1.25%. These increases are effective April 9th. Please be aware of these changes as well as all of your mortgage options. Please feel free to contact me to review the best mortgage option. My contact information is below or feel free applying on my website.

William McConaghy
Senior Mortgage Consultant
Lincoln Mortgage Company
wmcconaghy@linc-mort.com
609-207-9098
0 votes Thank Flag Link Mon Mar 12, 2012
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