*The loan the consumer has selected requires (MI) Mortgage Insurance (LTV is over 80%). Mortgage Insurance can be found/edited in 2 areas:
- In Loan Details – Housing Expenses Break Down (considered Section 5) the LO has the option to edit the Insurance row/line by clicking on the in the upper right hand corner of the section. By clicking into this functionality, the LO has the option to edit the line by clicking into the dropdown menu and selecting 1 of 3 options: Monthly MI, Single Premium Non-Refundable, or Single Premium Refundable.
- Monthly MI – cost of MI is included in monthly loan payments over the life of the loan
- Single Premium Non-Refundable – the consumer pays one lump fee associated with the loan costs. This fee cannot be recovered by the consumer if they decide to sell or move away from this loan once completed.
- Single Premium Refundable - the consumer pays one lump fee associated with the loan costs. The fee is a bit higher in comparison to a Non-Refundable fee. However, the consumer is able to recover some or all of the fee through this option.
The LO will find that under Loan Details – Section VII – Details of Transactions – section n. PMI, MIP, financed Funding Fee row will update with cost IF they chose a Single Premium MI option and that the Housing Expenses Breakdown – Mtg. Insurance row will now show $0.00.
- In Closing Cost Details – Initial Escrow Payment at Closing the option is available to make edits to New Taxes & Insurance / HOA Calculator Extended – row.
- IF the LO chose the Monthly MI option, this will display under Initial Escrow Payment at Closing – Monthly Mortgage Insurance (MI)