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Old 02-09-2009, 07:30 PM
 
6 posts, read 62,039 times
Reputation: 11

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I'm in the process of refinancing my house. I'm doing a 30 year conventional loan, I will be financing 90% of the amount that my home appraised at, I have a 4.875 interest rate with no points. My total amount financed is $148,500.

On my estimate of closing cost, there is a charge of over $7,000 that states is for MI, MIP & Funding fees. This is IN ADDITION to the closing cost & escrow charges. I'm confused as to what this fee is for and why it is so high. I've researched and understand the MIP, but from what I read it should only be around 1.5% of the amount financed (which would only be $2,225).

Can anyone tell me what would be included in this $7,000 charge for MI, MIP & Funding Fees?

Here is the breakdown they are giving me...
A. Purchase Price$ 0.00
B. Alterations, Improvements, Repairs$ 0.00
C. Land (if acquired separately$ 0.00
D. Refinance (Includes debts to be paid off $ 142,150.12
E. Estimated Escrows/Impounds/Prepaids $ 1,432.11
F. Estimated Closing Costs (excludes Credits)$ 2,487.50
G. MI, MIP, Funding Fee $ 7,083.45
H. Discount (if borrower paid $ 0.00
I. Total Costs (Add items A through H)$ 153,153.18
J. Subordinate Financing$ 0.00
K. Borrower's Closing Costs Paid By Seller$ 5.00
L. Other Credits$ 400.00
Borrower Upfront Dollars$ 400.00
Escrow Deposit Held By in the amount of$ 0.00
Land Equity$ 0.00
Lender Credit$ 0.00
Third Party Credit$ 0.00
M. Loan Amount (Excluding MI, MIP, Funding Fee Financed)$ 148,500.00[/font][/RIGHT][/RIGHT
N. MI, MIP, Funding Fee Financed$ 0.00
O. Loan Amount $ 148,500.00
P. Estimated Cash Needed to Close $ 4,248.18

Last edited by parkers80; 02-09-2009 at 07:38 PM..
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Old 02-09-2009, 08:03 PM
 
6 posts, read 16,017 times
Reputation: 20
My MIP/ FHA funding fee is 2200ish on a 148k loan. It should be 1.75% of the loan balance... recheck with someone, this doesn't sound correct.
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Old 02-12-2009, 01:38 PM
 
Location: Los Angeles
283 posts, read 708,299 times
Reputation: 205
Second on the 1.75% of the loan amount. My loan is $395,100 and the MIP is $6914.25. Also why do you have to pay upfront MIP charges on a conventional loan? I thought it is only required for FHA loans.
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