Arizona  FHA Streamline Refinance.info 

 

What is the MIP rate on an FHA Streamline Refinance?

 

There are 2 types of MIP (Mortgage Insurance Premium) on an FHA Streamline (and even a regular FHA loan) – Up front Mortgage Insurance Premium (UFMIP) and the Annual Mortgage Insurance Premium. The current UFMIP is 1.75% for all loans. However, the Annual Mortgage Insurance Premium numbers vary based on the loan terms, loan amount and LTV. The table below details all possible scenarios.

Term 30 Year Fixed Rate Mortgages

 

 

 

 

 

 

 

FHA Monthly Mortgage Insurance Premium Calculator
 

The Loan Amount is multiplied with the Insurance factor and divided by 12 to arrive at the monthly mortgage insurance payment. For example – If your loan amount is $300,000 and your annual MIP is .85 bps, your monthly MIP payment would be – (300,000 x .085)/12 = $212.50/month
 

Prior to President Obama’s announcement lowering the rate your monthly MIP payment would be – (300,000 x 1.35)/12 = $337.50/month
The savings = $125.00 per month!

 

Note – If your current FHA Loan was endorsed before May 31, 2009 you may be eligible for reduced UFMIP of 0.01% and an annual mortgage insurance premium of 0.55%. If you are not sure if your current loan was endorsed before that date, contact us and we can find that for you.

 

The upfront mortgage insurance premium is 1.75% of the base loan amount. This applies to all loan terms and LTV ratios. FHA allows financing of UFMIP into the loan amount. For example, if your loan amount is $300,000, instead of paying 1.75% or $5250 as closing cost, you can add that to your loan amount and make your principal balance $305,250.00

 

How much refund do I get on my UFMIP?

 

When you refinance your FHA loan to another FHA loan within 36 months, you are eligible for a partial UFMIP (Up Front Mortgage Insurance) refund. The refund is a percentage of the actual UFMIP you paid on your current FHA mortgage. The percentage goes down every month and ultimately becomes zero after 36 months. The table below provides all the details

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In many cases wheb you take advantage of the FHA streamline Interest Rate Reduction program, the costs of setting up the new escrow accounts are built into the rate. This allows for the option of having the UFMIP refund be sent back to you to use for other purposes.

FHA Loans without any Annual Mortgage Insurance Premium

 

It is no longer possible to eliminate your FHA Monthly Mortgage Insurance Premium. Loans with amortization of 15 years AND Loan to Value Ratio (LTV) of 78% or less used to qualify for no FHA annual mortgage insurance premium. However, this changed on June 3, 2013. After that, it isn’t possible to get any FHA loan without monthly mortgage insurance premium.

 

There is another way to eliminate or drastically reduce your mortgage insurance.

 

Refinance into a conventional loan and increase your equity thereby lowering your loan to value.

 

The easiest way to increase your equity is to do energy efficient improvements to your home that lower your monthly electric bill more than the amount added to your loan. In fact the best deal available today is to add a solar system with TheSolarMortgage to your home either as part of your mortgage or with dealer financing.

 

When you add a solar system to your home, your home equity will usually rise by 80% of the install price of the system. A $30,000.00 system will add $24,000.00 in equity. This increased equity is usually sufficient enough to put you over 78% equity ownership and eliminates your mortgage insurance.

 

You can take you $300.00 per month mortgage insurance, convert it into a $125.00 loan saving $175.00 per month and make an additional $200.00 in electricity. In many cases this is over a $500.00 per month swap in monthly payments when you combine your mortgage and your electric bill.

 

Now for the very best part you also receive up to $10,000 in tax credits!

Visit http://www.TheSolarMortgage.com