topic Help Make Sense of IFW (Worksheet) in Mortgage Loans

Help Make Sense of IFW (Worksheet)

Oyiwaa — Mon, 24 Feb 2014 02:53:53 GMT

Hello,

My mortage broker recently gave me this IFW (a worksheet) that breaks down expected mortgage payments.... Please see attachment below.

http://imageshack.com/a/img28/4884/33h8.jpg

I have two questions:

(1) I know I am supposed to pay a 3.5% downpayment for the FHA loan, which should approximate to about $8,000. I know she has accounted for it in the total estimated cost, but I can't see the where it appears on the worksheet.

(2) Is Mortgage Insurance Premium rolled into my mortgage -- it appears it is given the "Total loan amount". If so, is this total loan amount that will be used to determine the downpayment and the estimated monthly paymets?

I will be pleased if any of you experts can help me decipher this documents ...

Re: Help Make Sense of IFW (Worksheet)

ShanetheMortgageMan — Tue, 25 Feb 2014 05:09:32 GMT

The down payment is just a result of the difference between the sales price & the base loan amount. So if all of your closing costs were paid for you, the down payment would be $8,750 on what you linked (the difference between $250,000 & $241,250).

Yes, on what you linked the upfront mortgage insurance premium of $4,221.88 is being rolled into the loan amount to make it $245,471 (the $.88 portion is due at closing). You can also pay the $4,221 at closing instead of rolling it back into the loan amount, then the loan amount would remain at $241,250. The monthly MI is calculated on the base loan amount, however the P&I portion is calculated on the total loan amount.