Profile picture for Robert Kline

Is UFMIP a closing cost?

Is UFMIP a closing cost?
  • May 19 2011 - US
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Answers (11)

Best Answer

yes. it will be disclosed on a good faith estimate.   It is usually added to the loan balance.
  • May 19 2011
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Profile picture for Aspertane
@BKHJ    

Hi Gregorio! 
  • May 20 2011
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Robert, the first responses answered your question. The misinformation that followed is read by more than the OP, as in others also looking into an FHA loan. The mortgage insurance on FHA is confusing enough to most borrowers when explained correctly so it is important to state the facts for the benefit of everyone.     
  • May 20 2011
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Profile picture for Robert Kline
Is it typical around here that the lenders argue with each other about an issue that is irrelevant to the question the borrower asked?
  • May 20 2011
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Profile picture for shapiroamg
Paul,
Please report to coach's office and turn in your UserName.

UPFMIP is 1%
Monthly MIP is 1.15%
  • May 20 2011
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FHA Paul, the UFMIP is not 1.15 as BKJH already pointed out.
  • May 20 2011
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The up Front MIP is now 1.15% on most FHA purchases and it is a closing cost that can be financed into the loan amount. 

Hope this helps.

Paul
  • May 20 2011
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"So if you have a 1.15% UFMIP on a $100,000 base loan (assuming the down payment is 3.5%) then the UFMIP is $1150 and now your total FHA loan is $101,150. The mortgage payment will be based on the $101,150."

The FHA UFMIP is not 1.15% and has never been 1.15%. You are completely confused about FHA and have no business giving anyone advice about it. I strongly suggest you learn how something works prior to attempting to educated others.
  • May 19 2011
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You can finance it in the loan.  So they will just add it on to the loan amount for you.
  • May 19 2011
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Robert ~ it is a closing cost and is added to the base FHA loan amount. So if you have a 1.15% UFMIP on a $100,000 base loan (assuming the down payment is 3.5%) then the UFMIP is $1150 and now your total FHA loan is $101,150. The mortgage payment will be based on the $101,150.

A couple tips: you can have the seller pay this with a closing cost credit. You can have the seller pay p to 3% of your purchase price and apply that to reduce your closing costs.

 
  • May 19 2011
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Profile picture for daveskow
the upfront mortgage ins premium on a fha loan needs to be covered  either by paying it out of pocket at closing or by financing it into the new loan amount ( which happens most of the time )
  • May 19 2011
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