I am getting an FHA home loan. My mortgage company sent me a good faith estimate stating that my hazard insurance premium will be included in closing costs, but that I will also be paying a monthly hazard insurance payment, the same goes for the mortgage insurance. They are also wanting us to put $ 591 into hazard insurance reserves. What is this all about? Is this normal? I was pretty positive that when you got insurance you just paid your premium monthly, not up front and then monthly also?
Help me understand what is going on here.