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I have a broker who is charging me for Mip at closing and Monthly also and trying to add ufmip to my loan amount
the sales price is 195500. and I am putting down 25% doing that He told me I would not have Mip but now He is trying to make it a 30 yr with mip
he said I must have mip for 5 yr and loan to value 78%
please explain

brian1 · Posted: Wed Feb 16, 2011 6:41 pm Post subject:

Sounds like you are getting an FHA loan instead of a conventional? Is there a reason for that? Maybe credit scores? - ALL Fha 30 year loans have MIP - if you go conventional you would not have MIP or an UFMIP. Since it is FHA it would have those things attached to them regardless of down payment size.
It may be cheaper to go that route than to go conventional with a lower score??? Would have to know more to be sure
B

jimgilly · Posted: Wed Feb 16, 2011 8:40 pm Post subject:

Unless your credit scores are low, then it makes no sense to get a FHA loan if you can put 20% or more down. The broker likely pulled your credit file and got your credit scores so confirm this and ask him what you credit scores were. You should have 3, one from TransUnion, one from Experian and one from Equifax. Lenders will use the middle score.

Once you have your credit scores post them here.

Posted: Thu Feb 17, 2011 2:10 pm Post subject:

Sometimes borrowers mean 25% “cash to close” rather than “down”. Assuming the latter and a 5% note rate you’re “paying”, i.e., probably financing, an additional $1466 for UFMIP and six grand over the next first years ($103, $101, $100, $98, and $96 per month) for monthly MI. That not chicken feed. Are you sure the LO is concerned about his/her best interest or yours? Could be a valid reason for pushing you towards FHA but I’d get a second opinion from another LO. Very unusual situation.

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