Lender being Shady

[Morgan Truitt]

Hey all, 

I am closing on my first property in less than two weeks. My PMI has changed 3 times, supposedly my lender had included my 2nd income but during under writing this was changed to not be included, since I have not been working both jobs for 2 years. I knew that they couldn't include the 2nd income based off what other lenders I have talked to said. Is it true that your PMI will change based on your debt to income?

For reference my original PMI on my cost illustration was $60, I had asked him to verify this since all of the other mortgage lenders were higher (~ $100+). After I had decided to go with this mortgage company the PMI went up to $138. I was told that if i put more of a down payment that the PMI will go down, so instead of putting 3% I decided to put 5%. The PMI then changed to $107. The most recent cost estimate now has the PMI at $156. Is this normal?

Also, is it possible to change the mortgage lender this close to closing (Friday 5/26)? 

[Chris Mason]

The lender isn't being shady. Incompetent, perhaps. 

All the things you listed can legitimately change the cost of PMI, and lenders (both the individual MLO you are speaking with, and the bank doing the loan) aren't allowed to make money off of PMI being higher.