Thoughts on this Loan Cost Illustration

[memyselfi]

This is an Approximation Loan Cost Illustration for a FHA Loan at 235,000

 

Origination Charge 350.00

Upfront MIP 2267.75

Downpayment 8000.00

(Plus the standard things I don't think will vary much, appraisal, recording fee, title ins, etc.)

 

Monthly Payment 3.875%

Taxes 166.67

Principal and Interest 1077.04

Insurance 54.117

PMI 215.55

 

 

It seems to me that the PMI (upfront and monthly) is expensive. Would it not be better for me to pursue the NFCU Homebuyers Choice Program with no PMI? I could use some of the money I'm spending on the upfront MIP to buy down the interest rate, and I won't have to spend 215 a month on Monthly PMI.

 

Thoughts? Any other options?

 

Edited to add: middle score is 787. Thanks

Edited February 21, 2012 by memyselfi

[Brian B The Loan Professor]

The banks fees are really low which is good

The rate is a hair high - which probably is why the banks fees are so low.

B