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MIP Refund For FHA Refinances

mortgage9If you have an FHA loan and are refinancing it with another FHA loan, it may be possible to get a partial refund on the MIP that you previously paid. The amount depends on how long you have had the original FHA loan. Here are some important details on the MIP refund for FHA refinances.

What is MIP?

MIP stands for Mortgage Insurance Premium. When you obtain an FHA loan, you pay both an up-front MIP and a monthly amount. The up-front MIP is charged based on a percentage of the loan amount. Monthly insurance premiums are not refundable, but the up-front MIP may be partially refunded if you refinance your loan within a certain number of years and are replacing it with another FHA loan.

Amount of MIP Refunded

The chart below shows the percentage of up-front MIP that may be refunded if you refinance within the first 3 years. The months refers to the number of months that you’ve had the loan (and not the month of the year).

MIP Refund Chart

For example, if you’ve had your FHA loan for only 6 months, you’re still within year one of your loan. Therefore, you would refer to row 1 and column (month) 6. According to the chart, 70% of your MIP may be refunded.

Obtaining Your Refund

Check with your loan officer regarding your MIP refund and eligibility. MIP refunds for FHA refinances may make refinancing your loan more desirable and cost effective. Most home buyers refinance in order to secure a lower rate or to access some of the equity from their existing loan. Contact me today if you are interested in refinancing your FHA loan. I would be happy to provide you with a free quote and evaluation!

 

About Chris Graves

I grew up in Massachusetts, spent the majority of my young adult life in Boston, and own a home in Windham NH. I have owned properties in MA and NH. I specialize in mortgage lending in Massachusetts and New Hampshire and my company does have the ability to lend in other states. I graduated from the University of Massachusetts in Amherst Massachusetts in 2002. I have a Bachelor’s in Science. In addition to managing a team of loan officers my personal loan production is always in the top of the entire of company. I have personally been in the mortgage business for over 13 years. I pride myself with taking my clients from application to close in the smoothest and quickest way possible, while keeping them well informed during the entire process. I originate my own loans from start to finish and work hand in hand with my loan processors & underwriters to make sure I am updated to the minute with all of my files. I stay up to date with lending guidelines and speak with underwriters on a daily basis to ensure I am aware of all of the lending guidelines in place.

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