Do I have to pay monthly Mortgage Protection Insurance on FHA loan since you already pay MIP for FHA?
I brought a good faith estimate for FHA loan from Chase to Bank of America so that they can beat the offer with lower fees. An estimate from Chase that I have a monthly payment of $ 183 called (by Chase) Premium Mortgage Insurance (PMI/FHA Mortgage Insurance) which I checked is required by FHA.
But the loan officer at Bank of America told me that I have to pay monthly of $ 162 for Mortgage Protection Insurance as they called it on top of FHA mortgage insurance. And insisted that the FHA from Chase is not good comparing to their Advanced Mortgage Insurance Loan with a much higher rate, but no monthly mortgage insurance.
I feel like the FHA Mortgage Insurance is the only mortgage insurance that I have to pay to protect the lender, and it would come off after 5 years. B of A loan officer tried hard to sell me their Advanced Mortgage Insurance Loan, so I have a sense that they tried to mislead me with additional number to put on top of Chase offer so I would go for it. Please advice and tell me which is correct information.