In the event that you are refinancing you house loan with the FHA-insured mortgage, the FHA will will need the payment of an up-front mortgage insurance premium–MIP. The MIP sum is dependant on how big your refinance refinance mortgage. You can get a reduction on the up-front mortgage insurance premium for the mortgage in the event that you are refinancing from a current FHA loan right into a fresh FHA loan.
In case your present loan is an FHA mortgage look up the deal day and quantity of MIP compensated. In the event the mortgage is FHA and less than three years of age -insured, you may be given a refund toward the MIP in your new mortgage.
Multiply the number of the re finance mortgage instances 2.25 percent (the up-front MIP price for FHA loans as of 2010): $300,000 x 2.25% = $6,750 If you’re refinancing from a non-FHA loan or your existing FHA loan is over 36 three years old, this is your up-front MIP sum.
Look your MIP refund percent for those who really have an FHA mortgage less than three years of age up. The Department of Urban and Housing Development–HUD–issued letter listing the refund percents. To obtain the letter, follow the Mortgage Letter hyperlink in the FHA mortgage factsheet web-page hyperlink (see Sources).
The refund percent times the up-front MIP you paid on your present mortgage. The refund percentage is 3-4%, in case your present loan is two years of age. $5,250 x 34% = ,785
Subtract the sum of your MIP refund from the determined upfront MIP for the new loan to get your internet up-front mortgage insurance premium cost: ,750 – ,785 = ,965
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