06/18/2026
$650K home. 5% down. Base loan: $617,500.
FHA multiplies your base loan by 1.75%. That’s $10,806.
Most lenders add that straight to your loan without telling you.
Now you’re borrowing $628,306 instead of $617,500.
You have a choice: pay the $10,806 upfront at closing, or finance it and pay interest on it for 30 years.
Most people finance it because they don’t know they can pay it upfront.
If you don’t pay at closing if you finance it that $10,806 gets added to your loan.
You’re paying interest on an extra $10,806 for 30 years.
Plus you’re paying $419/month in MIP for life of the loan.
You’ll save approximately $2,594 by paying the $10,806 at closing instead of financing it.
That’s the $132,000 difference over 30 years.
DM me BASELOAD and I’ll show you your exact numbers.