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choochie · Joined: 15 Mar 2010 Posts: 1 1.32 Dollars($)

I am a first time home buyer thru a 5% down FHA loan. The mortgage company gave a a good faith estimate. When reviewing the estimate I saw they are asking for an upfront mortgage insurance of 3,142.13 for a 147,000 - 5% down loan. I know that this is going to be rolled over but do I still have to pay the pmi montly insurance? if so why then pay upfront? and what is the actual percentage to go by?

smithsussane · Posted: Mon Mar 15, 2010 9:52 pm Post subject:

Hi choochie!

Welcome to forums!

As far as I know, though you are paying a upfront mortgage insurance, still you would be liable for paying the monthly mortgage insurance to the lender. The percentage of the mortgage interest would depend upon the amount of down payment you are able to pay, I guess. You can contact your lender and ask him to explain it in details. He would be able to help you in a better way.

Sussane

jveenstra · Posted: Tue Mar 16, 2010 10:01 am Post subject: FHA

With an FHA mortgage you pay both the Up Front Mortgage Insurance Premium (UFMIP) and the Monthly Insurance Premium (MIP). Why??? Because that is what congress determined it takes to do FHA mortgages and have an insurance fund with enough money in it to continue to guarantee mortgages.
April 5, 2010, the UFMIP is going to 2.25% of the base FHA mortgage. You got in before that change.
Why is your UFMIP $3,142.13. If you base FHA mortgage after 5% down is $147,000, it should be $2,572.50.
When you put at least 5% down the MIP is .50% of your base loan. If you put less than 5% down, it would be a little higher at .55% of the base loan.

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If you pay an up-front mortgage insurance do you still have to pay the monthly pmi?