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)