mi vs pmi (mortgage insurance)

[Jason Malabute]

When lender says, "For FHA loans, there's a 1.75% upfront MI (usually added to loan amount) and 0.85% monthly MI" What does that mean???

For example, if the property is worth $559k, $200k down, and $359k loan would following calculations be correct?

Upfront MI= $359K * .0175= $6,282.50

Monthly MI= $359000 *.0085 =$3051.5 

I really do not think I did that correctly.

Is the calculation of the monthly MI and upfront MI based the loan amount?

Lastly what is the difference between a PMI and a MI? If you. look at the rental property calculator you will notice a MI and PMI

Please help!

Thank you,

Jason

[Chris Mason]

@Jason Malabute, this is pretty basic stuff that your lender should be showing you how to compute and understand, if she or he is actually doing her or his job. A good old fashioned firing might be in order.