Calyx Point 7 - Page 193

Point User Guide 175
FHA loans
Press the <Tab> key to calculate the Up‐FrontMIP/FundingFeeFinanced field.
This fee is also populated on Line 902 on the
GFE.
d If part or all of the fee will be paid in cash, click the lock box next to the
Amount
PaidinCash
field to enter the cash amount manually.
The
Up‐FrontMIP/FundingFeeFinanced and LoanAmountwithUp‐FrontMIP/
FundingFee
fields are automatically populated.
e Select the monthly mortgage insurance premium for the initial period from the first
Monthly Mortgage Insurance Premium dropdown list or enter the value manually.
f Enter the number of months that the initial rate is effective in the
months field.
The amount is calculated and automatically populated in the
Proposed Monthly
Housing Expenses
section on page 2 of the Loan Application, the Mortgage
Insurance
field on the Truth-in-Lending Disclosure, and Line 1002 of the GFE.
g If the mortgage insurance rate changes after the initial period, select the renewal
rate from the second dropdown list or enter the value manually.
h Enter
78% in the CancelAt field for monthly mortgage insurance.
When the Calculate button is clicked in the
Truth-in-Lending Disclosure, the
mortgage insurance amount is removed from the payment schedule after the
loan-to-value ratio reaches 78% and the borrower has paid the annual mortgage
premium for at least five years.
i Select the
Calculate based on remaining balance check box to indicate that the
premium is calculated based on the balance of the loan.
j To cancel the insurance halfway through the mortgage term, select the
Midpoint
payment cancellation
check box.
k Select an option from the Calculate Based On dropdown list:
• To calculate the premium based on the appraised value of the property, select
Appraisal Val.
• To calculate the premium based on the loan amount, select Loan Amount.
• To calculate the premium based on the sale price of the property, select Sales
Price.
Important
If you enter a value in this field and in the CancelAt field, the mortgage
insurance premium is canceled at whichever occurs first.
Note
Define the values for mortgage insurance renewal rates in the dropdown
list utility.