Don’t Forget To Do The Math...Don’t Forget To Do The Math Please Note: These are not literal...
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Don’t Forget To Do The Math A Quick Guide for FHA Upfront MIP, VA Funding Fee & USDA Guarantee Fee 1
Transcript of Don’t Forget To Do The Math...Don’t Forget To Do The Math Please Note: These are not literal...
Don’t Forget To Do The MathA Quick Guide for FHA Upfront MIP, VA Funding Fee & USDA Guarantee Fee
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Don’t Forget To Do The Math Please Note: These are not literal examples regarding loan scenarios. They do not reflect your specific loan parameters. Our objective is to ensure you enter the MIP only.
One Simple Equation for a Better ProcessIn order to avoid redisclosures and delays with your MIP Reduction, we need our brokers to manually input the Dollar Value for any FHA Upfront MIP, VA Funding Fee or USDA Guarantee Fee on the 1003 Section in Encompass.
We have a simple equation to calculate the dollar value needed. This will insure your Lock Confirmations will have the correct loan amounts.
Broker Compensation is always paid on the Total Loan Amount / Not the Base Loan Amount.
Use this simple equation for Line N:Loan Amount [M] x Annualized MIP % = [N]
This is a “Before Picture” of what your Details of Transaction looks like before you manually input Line N.
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Don’t Forget To Do The Math Please Note: These are not literal examples regarding loan scenarios. They do not reflect your specific loan parameters. Our objective is to ensure you enter the MIP only.
Example: FHA Upfront MIP at 1.75%This example demonstrates using the equation provided on the previous page to find out the correct amount for Line N.
Loan Amount [M] x Annualized MIP % = [N]
241,250 x 1.75% = 4221
*Calculation doesn’t include cents. Do not round up.
Notice Line M has a lower Loan Amount than Line O
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Don’t Forget To Do The Math Please Note: These are not literal examples regarding loan scenarios. They do not reflect your specific loan parameters. Our objective is to ensure you enter the MIP only.
Example: VA Funding Fee at 2.15% (Typical funding fee for first time use veteran purchase)
Loan Amount [M] x Annualized MIP % = [N]
241,250 x 2.15% = 5186Notice Line M has a lower Loan Amount than Line O
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*Calculation doesn’t include cents. Do not round up.
Don’t Forget To Do The Math Please Note: These are not literal examples regarding loan scenarios. They do not reflect your specific loan parameters. Our objective is to ensure you enter the MIP only.
Example: USDA Guarantee Fee at 2%Loan Amount [M] x Annualized MIP % = [N]
241,250 x 2% = 4825Notice Line M has a lower Loan Amount than Line O
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Don’t Forget To Do The Math Please Note: These are not literal examples regarding loan scenarios. They do not reflect your specific loan parameters. Our objective is to ensure you enter the MIP only.
This Details of Transaction Section correlates to the first example shown on
page 3 [FHA Upfront MIP at 1.75%]. Both Line N amounts match.
From Our Point of ViewThis is an example of what a 1003 page 3 or 4 looks like on our end. If everything was correctly calculated, Line N will reflect the amount you previously entered.
Our goal at Impac Mortgage Corp. | Wholesale is to make sure your loan process goes as smoothly as possible and you are satisfied with the results. If you have any questions or concerns, please contact your Account Executive, visit www.ImpacWholesale.com or call us at 877-310-0970.
This Details of Transaction Sectioncorrelates to the first example shown on
page 3 [FHA Upfront MIP at 1.75%]. BothLine N amounts match.
This is an example of what a 1003 page 3 or 4 looks like on our end. If everything was correctly calculated, Line N will reflect the amount you previously entered.
Our goal at Impac Mortgage Corp. | Wholesale is to make sure your loan process goes as smoothly as possible and you are satisfied with the results. If you have any questions or concerns, please contact your Account Executive, visit www.ImpacWholesale.com or call us at 877-310-0970.
FHA Upfront MIP at 1.75% Example
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