Is the FHA monthly mortgage insurance payment determined at the time the loan is written? I have a friend who streamlined her FHA loan in about 2012 (original FHA loan 2007). Her MI annual payment for the insurance was about $800.
Just now her loan company raised the mortgage insurance rate to $1800. They told her that there was a $950 escrow shortage and they were raising her monthly payment by $169 monthly for 12 months. Can they do this?
I forgot to say before that she was told that her escrow was short $950. She called her homeowners insurance which had not raised her premium. Real estate taxes have not gone up. She called her lender, they told her that the mortgage insurance premium went from $800 last year to $1800 this year. From what I'm reading, I thought that that rate was determined when you took out the loan and stayed stable.
Am I wrong? Is there anyone she could call (besides the lender) to inquire?