Financing in 94086>Question Details

Jroach2057, Home Owner in San Jose, CA

I have been paying MIP for 3 years on a FHA loan. I want to refinance (streamline FHA) Does my MIP start over for another 5 years?

Asked by Jroach2057, San Jose, CA Sat Nov 10, 2012

or can I keep the 3 years I already have paid?

0 votes Share Flag Financing in 94086

Help the community by answering this question:


Yes, I'm afraid it does start over, as it is a "new loan". However, depending on exactly how old your current loan is, you may be in for a treat on the new annual MIP. If your existing loan was endorsed before June 1, 2009, your new annual MIP will be 0.55%. If it is newer, then you will have to pay the new MIP rate of 1.2 or 1.25% depending on your LTV. Also, your new loan will require a new upfront MIP. But here again you get a break. If the loan is older than June 1, 2009, your new upfront payment will only be 0.01% of the loan amount. If it is newer, you must pay the current 1.75% upfront. Note that in both cases there is some refund of your original upfront MIP payment, depending on the age of the loan.

Tony Lacy-Thompson
Senior Mortgage Consultant
Arcus Lending
1 vote Thank Flag Link Sat Nov 10, 2012
FHA loans have MIP... you will start over if you refi
0 votes Thank Flag Link Wed Oct 9, 2013
According to the new FHA guidelines if you want to refinance for over 15 years you will have MI for at least another 5 years, no mater what your LTV is. If your loan was endorsed by the FHA after 06/01/09 then the calculation for the monthly MI is 1.35% if LTV is over 95% and 1.3% if LTV is under 95%....Both are for the entire length of the loan.

For loan terms of 15 years or shorter the calculation is .70% MI if over 90% LTV for the life of the loan and .45% MI if under 90% LTV for 11 years. For loans endorsed after 06/01/09.

For loans endorsed before 06/01/09 for terms of 15 years and less under 78% LTV the is no MI and over 78% - 90% LTV monthly MI is .35%. For loans over 90% LTV the monthly MI is .60%.

The first thing you need to find out was when your loan was endorsed by the FHA.

With the Streamline refinance the FHA will have the value of your home so there is no appraisal needed, but that value is what will be used to calculate the LTV.

There are a lot of different factors to consider when calculating the mortgage insurance so your best bet is to call a mortgage planner.

Good luck.
0 votes Thank Flag Link Tue Oct 8, 2013

I have a Lender who may be able to Re-Fi you without needing to pay PMI. Get in touch with me if interested, I can then email her info to you!
TC, Nina Daruwalla
0 votes Thank Flag Link Sun Oct 6, 2013
If your LTV (Loan to Value) is still above 80% you will still have to pay the MIP. Hopefully you are in an area where prices have gone up and therefore making your LTV below 80%. If this is the case your MIP will then disappear.
Good Luck
0 votes Thank Flag Link Sat Nov 10, 2012
Thankyou, my home is in the Berryessa area of san Jose. The streamline refinance doesn't include an appraisal. So I guess I would have to get one done to see if it 80 + LTV. Probably not
Flag Sat Nov 10, 2012
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