FHA LOANS REFINANCED WITHIN THREE YEARS MAY
BE ENTITLED TO A MORTGAGE INSURANCE REFUND CREDIT!
If you have an FHA loan, you paid an “upfront mortgage insurance premium,” also known as UFMIP or MIP, when your loan closed. But here’s some good news: If you decide to refinance your loan into another FHA loan within the first three years, a portion of that MIP fee is refundable to you as a credit on your FHA refinance loan.
The earlier you refinance in the three-year term, the larger the percentage will be for that return. As this chart shows, the refund is reduced by two percentage points for each month after the initial FHA loan closing date.
Important Points of the FHA MIP Refund Credit:
- FHA MIP refund credits are available for FHA loans opened less than three years ago.
- Refunds are not available as cash returned to you but rather as a credit applied to the refinance loan.
- MIP refunds are available for refinancing after the required seven-month waiting period.
- You must refinance into another FHA loan to receive an MIP refund credit.
FHA MIP Refund Credit Example:
Regarding the first requirement for receiving a refund credit, if the refinance does not close and fund by the 36th month after the current FHA loan was opened, you will not receive an FHA MIP refund. However, if your new loan does close and fund in time, here’s an example of how the refund credit would work.
- Your original MIP was $2,500.
- Let’s assume it’s been 11 months since your original loan was closed so, going by our chart, we would assume a return credit somewhere around 60%.
- On $2,500, that 60% would equal a refund credit of $1,500, which would be put toward your refinance.
Don’t Wait to Apply for an FHA Refinance!
As we’ve noted, you only have a few years of eligibility for receiving an FHA MIP refund credit. When you’re fortunate enough to still be in the three-year window for receiving a refund AND interest rates have dropped significantly enough to make refinancing a good option at the same time, it’s time get in touch with Accurate Mortgage Group to see how a refund credit and refinance could benefit you.
Give us a call or fill out the form on this page and we’ll get the process started right away. Don’t wait, though. Nobody knows how long rates will remain this low!
Disclaimer: Additional terms and conditions apply. Call for details. Accurate Mortgage Group will issue a lender credit at closing for the amount of closing costs on the loan. Lender credit will include the following fees: lender fees, government recording charges, documentary stamps, intangible taxes, appraisal fee, title charges, and other applicable third-party fees. Appraisal fee paid for purchaser up front but fully credited at closing. Lender credit does not include rate discount costs/discount points, prepaid escrow items, prepaid mortgage insurance premiums, or the payment of a mobile notary fee if the selected closing agent has an office which serves the area, or additional non-standard services requested by the purchaser. Included closing costs are paid in the form of a lender credit at closing. Additional limitations to the lender credit may apply when used in conjunction with any other Accurate Mortgage Group offer(s). Consumer may choose not to impound escrows. In such an event, additional costs may apply.