Question: > I did a search for FHA and didn’t find the info that I’m looking for.
> I had an offer accepted on my first house and have been dealing with these > mortgage companies that are driving me insane. I’ve got 2 that I’m trying to > decide between and they’re both telling me different things. Here is the > main issue I’m running into:
> Both loans are 30y FHA @ 5.25%, and the closing costs listed on my estimates > are almost exactly equal, but there are some discrepancies.
> Company 1 (wells fargo) is charging me $2200 listed as “Upfront FHA PIM”. > Company 2 (Mortgage Broker) does not have that charge listed and was unable > to tell me what it was for. The broker agent is quite pushy and explained it > about 6 different ways that didn’t make any sense. She told me it must be > going into escrow for the PIM but then when I told her if that was the case, > then Wells Fargo’s loan was going to cost me $2200 less to close on, she > recommended that I find out exactly what the charge was for. I researched > online and from what I have found it looks like ANY FHA loan should carry > this charge for insurance — why would the broker not have it listed and not > have any idea what it even meant?
> The broker agent told me that there was a 1% administrative fee for all FHA > loans. Neither wells fargo or the broker has it listed on my estimate. I > have not been able to ask wells fargo about it, but when I brought it up to > the broker she said she did not know if FHA was still charging it, so she > had left it off. I told her I didn’t want to find out I needed to pay more > later… she left… came back and said her manager had OKd her to pay for > the 1% in the event that it did come up. I made her put this in writing and > she signed it. Still seems fishy… has anyone heard of this “FHA > Administrative fee”?
> Last question…. the only other difference is wells fargo is charging me a > 1.015% origination fee, and the brokerage is not charging me an origination > fee but is charging me a 1.5% “Mortgage Broker Fee”. Do these percentages > seem correct?
> I know its a long post, but all these sales people are very hard to get > straight answers from. I appreciate any help I can get from the group.
> Thanks,
Answer: Is PIM, PMI insurance? IIRC FHA does require an upfront PMI and depending on the price of the house (limited by FHA amounts), $2200 sounds about right. I have also heard that there is a 1% administrative fee on all FHA loans. Why don’t you call Wells Fargo and ask them instead of asking the broker what the PIM is? “Mortgage Broker Fee” or “Origination Fee” sounds like the same thing to me. I took my home loan with Wells Fargo and while I think they did an excellent job overall they did underestimate my closing costs by about 50%. Seems like every mortgage broker I talked to tried to low ball me with super low closing cost figures. I would really get on them and ask them what the “worst case” scenario would look like, then it better not go over that number.
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