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Hello, my FHA mortgage was closed in Jan 2009 at 5%. If I refinance before Jun 3, any idea what my PMI will be?

Thank you

Hi dqatota;

On Streamline Refinances, for loans which were Endorsed by HUD prior to June 2009:
The Up Front MI is a minimal .01%
The Annual (paid Monthly MI) is calculated at .55%

For example,
A $200,000 loan amount would have $20 in Up Front MI and monthly MI of $91.67/mo

-Adam
Old Hippy & Mortgage Pro

Hi Adam,

Thank you for the info. I just PM'ed you with the estimates from my loan officer. Can you please take a look?

Hi all. It has been a couple of weeks as well as appropriate time to update this thread regarding FHA Streamline Refinances.

As mentioned in earlier posts, new case numbers as of June 3 brings changes to MI, where MI will be mandatory either for 11 years or the life of the loan (instead of 5 years minimum) the FHA Streamline can be an excellent loan for those whose current loans were endorsed prior to June 2009 as the reduced MI premiums still apply. (Also, I wonder how many really held their FHA long enough for the MI to just drop off? If values increases most FHA loans get refinanced into conventional mortgages.)

In respect to rates, they have significantly jumped in the past 3 weeks, where the rate of 3.75%, 4.00%, or even 4.25% is not unusual to see when it comes to providing a sufficient lender credit to cover closing costs.

I cringe bringing updates with no good news. However, with rates on the rise, there are still many who have been holding off refinancing or just finding this information online, who can benefit.

-Adam
Old Hippy & Mortgage Pro

I was looking at one of the quote for FHA streamline and shows the lenders credit to off set closing cost. What happen if this credit is more then your closing cost ? can you use this remaining balqance for escrow account?

creativefat said:   I was looking at one of the quote for FHA streamline and shows the lenders credit to off set closing cost. What happen if this credit is more then your closing cost ? can you use this remaining balqance for escrow account?

The lender credit is for both Closing Costs and Prepaid Expenses (i.e. escrows for taxes and insurance, interest for the days in the month you are closing).
If there is still an excess credit after all those allowable costs have been covered, the lender should credit the excess towards principal reduction when the loan is funded.
(Not all lenders have the same policies towards principal reduction, so, if this is applicable, make sure you utilize a lender who will!)

-Adam
Old Hippy & Mortgage Pro



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