Question about PMI for FHA mortgage loan?
I was looking over our commitment letter for our mortgage from Wells Fargo and it states…
“For an FHA loan, Buyer must either pay or finance the up-front mortgage insurance premium of $ 1,832.50 and must pay a monthly MIP charge to start at $ 136.47 per month.”
I was confused about this as I didnt realize that there are two separate payments here….
This basically means that I have to pay $ 1,832.50 up front (or finance) AND pay another $ 136.47 per month. If I choose to finance the first part, it would be $ 152.71 plus $ 136.47 per month that I’d be paying for the PMI.
Does this sound right? Everyone I’m speaking to says that it sounds a little high…. I called the mortgage banker and he confirmed that this is 2 separate payments per month, BUT I have called and asked him questions in the past and he has given me incorrect info…. So I was hoping he’s wrong about this too!! I can definitely afford it, but it’s expensive!!
It doesnt say….. I’m wondering if that $ 1,832.50 is an upfront fee meaning that it’s a one time fee (unless you finance) and that after we pay that off, we continue with just the $ 136.47 per month…..