Refund Chart for FHA Mortgage Insurance

By
Mortgage and Lending with Mortgages Unlimited, Inc NMLS 274132

An FHA STREAMLINE REFINANCE is HOT right now because of the super low mortgage rates, so it is important to understand a possible FHA Mortgage insurance refund you may qualify for.

If you have an FHA loan, FHA charges an upfront MIP (mortgage insurance premium). This amount is calculated as a percentage of the loan amount, then added to your loan amount.  That MIP amount you paid depends on when the FHA case number was requested.

If you've had your FHA loan for less than three years, and your are refinancing to a new FHA loan, you get a refund of some of the initial mortgage insurance premium (MIP) you paid on your FHA loan

The chart below is what FHA underwriters use to determine the amount of money refunded at the time of a FHA to FHA refinance.  FHA will refund a percentage of that upfront MIP in the refinance. No refund check or anything is given to you, the refund is simply calculated into the costs of the new loan.  The shorter the home owner has had the current FHA loan the higher the refund amount. This amount is displayed on page four of the application section called the "details of transaction" page.

An FHA STREAMLINE REFINANCE is HOT right now because of the super low mortgage rates, so it is important to understand a possible FHA Mortgage insurance refund you may qualify for.

If you have an FHA loan, FHA charges an upfront MIP (mortgage insurance premium). This amount is calculated as a percentage of the loan amount, then added to your loan amount.  That MIP amount you paid depends on when the FHA case number was requested.

If you've had your FHA loan for less than three years, and your are refinancing to a new FHA loan, you get a refund of some of the initial mortgage insurance premium (MIP) you paid on your FHA loan

The chart below is what FHA underwriters use to determine the amount of money refunded at the time of a FHA to FHA refinance.  FHA will refund a percentage of that upfront MIP in the refinance. No refund check or anything is given to you, the refund is simply calculated into the costs of the new loan.  The shorter the home owner has had the current FHA loan the higher the refund amount. This amount is displayed on page four of the application section called the "details of transaction" page.

FHA MORTGAGE INSURANCE REFUND CHART

FHA Mortgage Insurance Refund Chart

Example: You are refinancing, and at the time of closing, your current loan would be 2-years and 2 months old. Looking at the chart, you would get a 30% of the original MIP refunded to you as a credit on your new loans closing costs.

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Tags:
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Rainmaker
813,319
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

FHA has been what has helped us with the Housing market from loans to refi.

Jun 14, 2012 01:57 AM #1
Rainer
24,044
Gordon Cuffe
Realty First - Rocklin, CA

FHA is sure cheap. It seems like the refunds went over a longer period of time back in the ealy 2000's.

I remember actually receiving a cash refund from a refinanced fha loan to conventional loan back then. 

 

 

http://www.mortgagecompanyinsacramento.com/

May 03, 2013 11:00 AM #2
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Rainmaker
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Joseph Metzler

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