Question by jazz: How much should a mortgage insurance premium cost in a refinance. Is a website that offers free advice?
Im in the process of refinancing my home. I received my good faith estimate. I do not understand what some of the charges are. Some of the charges were explained to me by the loan officer but I’m not sure if its all truth or sales. I want to make sure that I’m not too much for a cost. In my truth and leanding statement . Im being charge 1% of a 362,000, 30 year home loan at 6.5% which is 3537.12. I’m also being charged a loan discount fee of 0.837 for 35.12. My big question is the Mortgage Insurance Premium for 44.38 (UFMIP/FF Financed). Is this something that I can avoid if I’m going to paying monthly mortgage insurance of 146.66. Where can I get free advice to make sure I’m not getting screwed? Please help.
Best answer:
Answer by financing_loans
Yes you are getting screwed. HOLY SHIT…..
If you are being charged an upfront mortgage insurance it has to be FHA. But that seems way high. Its 1.5%.
1% origination and basically 1% discount point. Plus the PMI. You are gettting screwed. The MIP will be based on your loan on an FHA. Private mortgage insurance can be paid upfront, or monthly. If its a conventional loan you can pick.
http://www.mgic.com/is/html/ratefinder.html
This will be your rate if you pay monthy. Im flat out telling you that you are getting screwed. Call another loan officer. Oh if you use what I sent you, put 35% in the coverage. Renewals are constant.
This would be for a conventional loan. FHA will charge 1.5%, but to have a loan that high you have to be in certain areas. My rate sheet is showing that the loan officer is charging you 2 points on the front, close to 3 points on the back. They are making the absolute limit on your loan. 4.5% from you and the bank. Dont worry about the PMI worry about why you are paying 17,000 for a damn loan. Worry about that.
I agree with MIKE. Get a new loan officer.
JUST print my and mikes answer and walk into your loan officers office or email it over. I dont care. Say why are you making 17,000 on my loan? Make him/her show you everything. They are truly screwing you.
What do you think? Answer below!
The interest rate and the fees they are charging you are ridiculous.
I recommend that you cancel the transaction and start over with your credit union if you are a member of one or the bank where you have your savings and checking accounts.
I recently refinanced my house. I started with an online broker that claimed to have extremely low interest rates and low fees.
At the sign off I discovered that the loan terms the rates and the fees were completely different from what I had been told all through the process. the interest rate that they had was absolutely outrageously high.
I walked out of the title company halfway through the sign off and took all of the documents with me so that they could not possible put through a loan.
I then went back to the bank where I have my savings and checking accounts. They offered me the option of a 5.25% 15 year fixed rate loan or a 30 year 5.75% fixed rate loan. I chose the 15 year fixed because of the lower interest rate and I can afford the higher payments.
Unless your loan amount is over 80% of the fair market value there should be no mortgage insurance premium.
Also you should be able to pay the loan amount down to less than 80% of the fair market value and have the mortgage insurance premium removed.
the terms of this loan that they have given you do not look good to me.
I recommend that you cancel this transaction and start over with your credit union or the bank where you have your checking and savings accounts.