My GFE

[cableguy123]

I have two GFE's here been shopping hard for the best rate... one says my closing cost will be around 8k and the other will be around 11k the one from 11k is from penfed awesome rate and cheap MI but i noticed they have a section here on the GFE called MI Deposit for 1751.56 the other GFE dose not have that on it what exactly is that for and how dose that help or hender me?

[StartingOver10]

Call your LO and ask about the MI.

If you are going FHA that is probably the lump sum due at closing that is typically financed in to the deal, but it is not possible to know without more info Your LO will know.

[jasonnewrate]

More than likely its the upfront mortgage insurance which means on the other GFE this fee wasnt disclosed properly. Is the loan FHA? 

[cableguy123]

Thanks i am going to send her a email right now its going to be a conv two of the best credit union are hard with mortgages... i had to fire navy fed they are just too expensive blah lol

[cableguy123]

no it will be conventional with 5% down but all the docs penfed sent where from their website it was i guess automated?

[ShanetheMortgageMan]

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@cableguy123 wrote:

I have two GFE's here been shopping hard for the best rate... one says my closing cost will be around 8k and the other will be around 11k the one from 11k is from penfed awesome rate and cheap MI but i noticed they have a section here on the GFE called MI Deposit for 1751.56 the other GFE dose not have that on it what exactly is that for and how dose that help or hender me?

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Those two items are linked.  You have cheaper monthly MI because you are paying for a portion of it at closing - it's called "split MI" and it's becoming more popular these days.  You can pay for it all up front, you can pay for a part up front & a part over time, or you can pay it all completely over time.  Depending on how long you will stay in that mortgage would determine which is the better deal for you.

[cableguy123]

Thanks Shane that sounds like you explained it up i was added the caculations and it still will save money at the 2 best rates i found over time even paying that will save 5k or more and also paying the rate down will save about 7k or more so a little more up front and a cheaper payment each month... i also added it in paying 200 extra a month will allow me to pay that off in 5 and a half years i will reach the point where it will drop off..

[FSFdoppleganger]

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@cableguy123 wrote:

Thanks Shane that sounds like you explained it up i was added the caculations and it still will save money at the 2 best rates i found over time even paying that will save 5k or more and also paying the rate down will save about 7k or more so a little more up front and a cheaper payment each month... i also added it in paying 200 extra a month will allow me to pay that off in 5 and a half years i will reach the point where it will drop off..

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Just curious.. Did you end up using PenFed? I want to know if you used them because they do things differently and the documents my LO is asking for a Letter of Commitment is like going through underwriting before a ratified contract.

Thanks for your input.