Boynton Beach, FL · Member since 2014 · 18 posts · 5 votes
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!
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
11y
Yep, there two MIP fees.....you 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.
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.
Investor · San Diego, CA · Member since 2014 · 592 posts · 765 votes
11y
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.