Double Mortagege Insurance Premium (MIP) Charges? FUNDING & FINANCED

5 Replies

Hi There!

I'm purchasing a home and the lender has sent me over the estimated closing costs.
I noticed on the numbers they have a "PMI, MIP, Funding Fee" and a "PMI,MIP, Funding Fee Financed"

These fees are the exact same amount. I'm financing a FHA loan and understand about having the the MIP fee. I just think they are double charging.

What do you think? Any light on the matter would be great, thanks!

Yep, there two MIP have an upfront fee of 1.75% that gets rolled into your mortgage, AND you have an annual fee of 0.85% of the loan, payed monthly.

@Wayne Brooks

Hey Wayne, Thanks for the quick reply! 

I see the 1.75% rolled into the loan and also a "PMI, MIP, Funding Fee" of 1.75% that I would have to come up at closing... that's what I'm referring and seems like a double charge.

Here is a pic, does it seem normal?

You are not double paying, this is stating that the amount of the PMI funding fee is being rolled into your loan.

Total cost/debits (A-H) are 227,030.06

Total credits (J-N) + P also adds up to 227,030.06

I understand why you're confused though, this is possibly the worst presentation of a closing statement I've ever seen.

Note that if the PMI, MIP, Funding Fee Financed (n) were to be removed, your cash from borrower (p) would need to increase to match the total credits to the total debits.

@Frank Jiang

Hey Frank - when you put it as debits and credits, then it made perfect sense! Thank you!

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