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Why Refi PMI being added on new loan since current loan already has PMI added

Current FHA mortgage with PMI about $6,400 added to loan, now planning to refinancing they wont to add $4,500 to the new loan amount. My loan is from 6/2010 going from 4.75% to 3.25%. so I don't understand how I am now going to pay more for PMI over $11,000. How can this be should It be adjusted that I already paid 2yrs of PMI and the current PMI

with new PMI should be adjusted. Because I am being told the add on top of new loan.

  • October 23 2012 - Roselle Park
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Answers (3)

The new loan has UFMIP of 1.75% that is financed on top of the new loan.  You will get a small refund from the previous UFMIP that was financed with the original loan.  You monthly MI is also going to go up dramitically since it will be subject to the new premiums.  That is going to initially offset some of the savings that you get from lowering the rate.  The one bit of good news is that provided your credit is good, the lender credit at 3.25% should offset most it not all of your closing costs that you normally would have to pay out of pocket.

  • October 23 2012
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yes MI was finance on current mortgage and base on current balance was told they will X 1.75 was just around $4,500. to be refincace again I just don't under stand is that correct are they getting more money from me on this MI also its a Streamline FHA but I am getting a lender credit they said also
  • October 23 2012
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Sounds like up front mortgage insurance is being financed.  To figure out that amount you take the loan amount and times it by 1.75.  Are you sure they are not rolling all the closing cost into the loan also?

  • October 23 2012
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