Private Lender Loan wants PmI paid upfront!

[Jasmine Pickney]

Hello, I’m going through a private financing company and I am being advise to pay it before closing. Is it to be paid upfront or at closing? 

[Jay Hurst]

Quote from @Jasmine Pickney:

It’s an interest only loan for a rental property. 

2 points system 
160,000k loan amount
origination fee 3,200
PMI 4000 


Quote from @Jay Hurst:

Quote from @Jasmine Pickney:

Quote from @Jay Hurst:

Quote from @Jasmine Pickney:

Hello, I’m going through a private financing company and I am being advise to pay it before closing. Is it to be paid upfront or at closing? 

Yes

 @Jasmine Pickney PMI as in private mortgage insurance? if so, that is odd as PMI is a FHA loan cost, not typically on private loans. Maybe it is something else?

 @Jasmine Pickney You should NOT being paying PMI AT ALL on a private loan. That is for FHA loan. Maybe they are asking for pre-paid interest upfront?

@Jasmine Pickney You are essentially just paying 4.5% points for this deal. You have the 2 they are calling origination and the 2.5 (the 4k) they are just calling mortgage insurance. At the end of the day, who cares what they call it right? It is still a cost. private mortgage insurance is only require in certain circumstances on conventional and FHA loans. So, they are just naming a fee so they do not have to show you 4.5% points.