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snowhite
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 Posted: Mon Jul 26, 2010 11:34 am Post subject: PMI - Conventional vs FHA |
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We bought our house last September and as we were planning to put down 10% we learned we have to pay PMI. We told the Bank of America mortgage agent that we were planning to pay it off as soon as possible. We have been making double payments in hopes to get rid of our PMI. He told us that the best thing for us is the 30 year Fixed with PMI.
However, our mortgage is listed as 30 Years Conv w/PMI on our online account page and our HUD statement states that we have an FHA loan and we were charged around $6500. When I called the customer service I was told our loan was Conventional but FHA was underwriting it. Is this correct?
Also, if we pay 20% of the value of the house will we be refunded the portion of the $6500 PMI initially charged? It is very hard to get a correct answer from the Bank of America customer service representatives! We are very frustrated with this situation
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 tfaulhaber1
Community Expert
Joined: 17 Dec 2009
Posts: 364
49.57 Dollars($)
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| Posted: Tue Jul 27, 2010 8:25 am Post subject: |
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That is not correct? With a conventional loan, you don't pay an UP FRONT MORTGAGE INSURANCE PREMIUM. What's the name of this company?
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Theo (Ted) Faulhaber
Sr. Community Banker
Home Savings of America
516-284-4233
516-639-5365
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snowhite
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| Posted: Tue Jul 27, 2010 9:43 am Post subject: |
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Bank of America.
In truth in lending form it states Conventional loan with HUD1 Statement has FHA marked.
If we were planning to pay down 10% off as downpayment and we were told our loan will be conventional why would be given an FHA loan? |
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tfaulhaber1
Community Expert
Joined: 17 Dec 2009
Posts: 364
49.57 Dollars($)
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| Posted: Tue Jul 27, 2010 10:03 am Post subject: |
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It shouldn't...plain and simple. With an FHA loan, even if you pay below the 80% mark; you'll be unable to remove MI.
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Theo (Ted) Faulhaber
Sr. Community Banker
Home Savings of America
516-284-4233
516-639-5365
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jveenstra
Community Expert
Joined: 10 Nov 2008
Posts: 846
Location: River Edge, New Jersey
184.76 Dollars($)
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| Posted: Tue Jul 27, 2010 10:52 am Post subject: FHA vs Conventional |
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A conventional loan is not an FHA loan.
An FHA is not a conventional loan
An FHA loan is a government loan.
While it seems maybe someone at B of A is confusding the terminolgy, it also seems you have paperwork with conflicting terms as to the staus of your loan.
If you were charged $6,500 last September and that happend to be the FHA up Front Mortgage Insurance Premium (UFMIP), that would mean the base mortgage amount after your 10% down payment would have been $371,428 and if you made a 10% down payment your purchase price was about $412,700.
If those numbers are correct, then it sounds like you have an FHA mortgage. You would also have a monthly Mortgage Insurance Premium Payment (MIP) of about $154 monthly
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John Veenstra
Senior Mortgage Consultant
Approved Funding Corp
41 Grand Avenue
River Edge, NJ 07661
800-475-0123 Ext 278
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