I have a PMI funding fee on my closing paperwork of $2342 and pay $147 a month to PMI. Is this correct should I have both?

Your loan is an FHA loan and has MIP. It is with a lower down payment. This is financed upfront at 1.75% of the loan amount and monthly at .85.% divided by 12. Not mowing your balance of you loan this would be the likely scenario. I am local to you at 805-530-1199.

Yes..It's possible your loan is FHA, and if that's the case.. they charge 1.75% upfront, which can be financed.. and then an annual premium of .85% divided by 12 months to come up with the monthly premium.. Unfortunately, if you don't have 20% down, you have to pay MI.. and the sad thing about FHA, is that the MI is there for the life of the loan... the only way to remove it would be to refinance into a conventional loan, or just pay off your loan.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

If you have a FHA Loans you will have these fees.

Yes... I assume this was an FHA loan, VA loan or USDA loan. All of these loans have a "funding fee", also known as "up-front mortgage premium." FHA and USDA loans will also have monthly mortgage insurance. The UFMIP is added to your loan amount, and not an out-of-pocket costs. Unfortunately, it is coming as a surprise today because your Loan Officer didn't tell you about it up-front. It is real and correct, but it shouldn't be a last minute surprise. This is why I tell people your choice of Loan Officer is very important.