The MIP Funding Fee is assessed and due monthly with your mortgage payment. This calculation is a bit more complex than figuring the Upfront Funding Fee. First, estimate the average balance of your mortgage for the coming year.
In addition to the cost of MIP, it is harder to get in today's market because the companies providing it have changed their guidelines. Guess what, on conventional loans, no MIP, ... no loan. The mortgage insurance for this program is replace by a 3.5% funding fee. That is ... 3.5% of the loan amount. A special note here: Effective October 1st, 2011 this fee goes to 2% with an additional Annual fee of .3% of the average outstanding principle balance.  You'll notice that even if your FHA down payment is 20%, you will still incur the upfront funding fee and monthly insurance premium (MIP). The Federal Housing Administration (FHA) loan program does not have a sales price limit, however, the Federal Housing Administration does set maximum loan amounts for each US county. For the lack of a better term, think of the FHA funding fee as a slush fund. Yes, I know it sounds crass, but as you read on, you will easily understand the FHA funding fee. In the State of Pennsylvania, we pay an un-insured/under insured fee on our aυto policy. PMI question about funding fee and loan cost. I got back my GFE and my question is on the PMI, MIP funding fee. This isn't listed as a prepaid item does this mean its added to the loan amount or do I have to pay this up front. It's a FHA loan with 3.5% down on $100k house. The fee is $1700 for PMI. It is called the UPMIP (upfront mortgage insurance premium) which can either be paid at closing by you or added to the mortgage. The amount of this UPMIP is determined by your credit history largely. There will also be a monthly fee added into your mortgage for this insurance...PMI{private mortgage The FHA Funding Fee is the upfront cost and monthly premium you pay whenn you get a mortgage guaranteed by the Federal Housing Administration (FHA). The upfront fee, also called the upfront mortgage insurance premium (UFMIP), equals 2.25 percent (subject to change) of your mortgage amount. FHA MIP Funding Fee. The MIP Funding Fee is assessed and due monthly with your mortgage payment. This calculation is a bit more complex than figuring the Upfront Funding Fee. First, estimate the average balance of your mortgage for the coming year. Current FHA Mortgage Rates. The FHA requires applicants to pay in cash or finance a  funding fee  with the FHA loan. The amount of the funding fee has changed several time over the past few years. The applicant is also required to pay a monthly mortgage insurance premium (mip). This page will attempt to explain the FHA loan calculation and the FHA monthly mortgage insurance premium (MIP) over the past few years. A more detailed explanation can be found on the FHA Funding Fee Explanation page. Best Answer: PMI, MIP: PMI (private mortgage Insurance), or MIP (mortgage insurance premium) may be required by your lender on a conventional loan if your loan-to-value ratio (LTV) is above 80 % or more. Funding Fee: VA loans have a Funding Fee that can be as high as 1.875% and have a maximum guarantee of $46,000.00. If your loan amount is above 80% of the property's value based on the appraisal or the selling price (whichever is less) you may have to pay for mortgage insurance. Source(s): SanJoseNotary · 7 years ago. 19th Nov 2009 by Burt Carlson. PMI stands for Private Mortgage Insurance. This is insurance that a mortgage lender gets to insure itself in part from a loss on a loan. MIP is Mortgage Insurance Premium and is the cost of the insurance. On an FHA home loan the borrower is required to pay an up front payment based on a certain percentage of the loan amount. This is called the Up Front Mortgage Insurance Premium (UFMIP) and is included in the costs of an FHA loan. FHA also requires that a borrower pay a certain percentage of the loan amount monthly toward mortgage insurance. These dollars go into a pool to offset future losses that FHA may have on its loan portfolio The VA loan allows veterans 103.3 percent financing without private mortgage insurance or a 20 percent second mortgage and up to $6,000 for energy efficient improvements. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA; this fee may also be financed. 
http://rural-development-mortgage-guidelines.com/guaranteed_funding_fee.htm http://www.anytimeestimate.com/FHA/fha_funding_fee__mip_explanation.htm http://www.zillow.com/advice-thread/PMI-question-about-funding-fee-and-loan-cost/233203/ http://homeguides.sfgate.com/fha-funding-fee-calculated-40184.html http://www.anytimeestimate.com/FHA/fha-funding-fee-mortgage-insurance.htm https://answers.yahoo.com/question/index?qid=20080704145955AAhazcj http://www.financialadvisory.com/answer/what-is-pmi-mip-funding-fee/ https://en.wikipedia.org/wiki/VA_loan
what is pmi mip funding fee