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Why my Closing Cost Worksheet includes FHA MIP VA funding fee PMI and MIP in my monthly payment?

April 26, 2017closing COST fee FHA funding includes MIP PMI VA worksheet

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Why my Closing Cost Worksheet includes FHA MIP VA funding fee PMI and MIP in my monthly payment?

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FHA has an up front mortgage insurance premium-UFMIP- determined by FHA per your loan to value; this is always financed on top of the base loan which covers your payoffs, closing costs and prepaid items. This UFMIP is refundable in part for 36 months when you streamline refinance your FHA loan, otherwise it is not refundable. Part 2 of your questions is regarding the montly insurance premium (MIP); this is required by FHA until you reach 78% of your house value on your loan. This is the $166 in your case. The UFMIP and MIP are what keeps FHA in the business of riskier loans and aggressive rates.