Financing in 60188>Question Details

S, Other/Just Looking in 60188

If I refi my FHA loan will I have to start over the 78% LTV before the MIP is removed?

Asked by S, 60188 Wed Dec 17, 2008

For example the FHA loan is currently at 89% of the principle. If I refi, will I have to start over at 100% of principle and thus start over?

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Your monthly insurance premium will continue until you have paid your balance down to 78% AND be in your FHA loan for FIVE years. If you refinance into a fifteen year, you will not have a monthly premium at your LTV but you will have an upfront premium. You will have a pro-rated portion of your upfront premuim refunded if you refinance within the first three years of your FHA loan.
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0 votes Thank Flag Link Mon Dec 22, 2008
To my knowledge, you need to be at 78% of the Original purchase amount and pay AT LEAST 5 years of MIP before you can drop it. Most folks refi out of FHA when then hit 78% and go conventional so you dont have to pay the up front UFMIP (1.75%) and the monthly.
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0 votes Thank Flag Link Wed Dec 17, 2008
Ask your mortgage broker who would have the entire financial file of your & documents regarding your property. All placed in a "formula" then broker can discuss what is too your best interest. Without reviewing your files difficult render an opinion in your favor.
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0 votes Thank Flag Link Wed Dec 17, 2008
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