ufmip: Sir, I think your calculator is broken! - 09/13/10 02:20 AM
Sir, I think your calculator is broken!  My purchase price is $300,000. My down payment is 3.5% which is $10,500.  My new loan amount should be $289,500.  Why are you showing $296,013? 
I'm glad you asked!
 
FHA has two types of mortgage insurance premiums.  Up front and monthly.  The combination of the two is what the FHA collects as a reserve to pay for loans that default.  We are focusing on up front only.
The Up Front Mortgage Insurance Premium (UFMIP) currently (September 2010) is 2.25% of the loan amount.  300k- 3.5% = $289,500 x 2.25% = $6,513.75.  … (28 comments)