Loan amount was: $745K and MIP I paid is around 2.25%. House value was: $874K. Right now the payments are $5402.00 / month (including Property tax).
I want to move to Conventional Loan now. Will I get back by 2.25% (pro-rated) back?
Thanks & Regards,
You should have no issue canceling the MIP, unless of course it is a Hope loan or a loan prior to 2001.
I doubt you have either and it is straight forward FHA loan.
Let me know if I can help Feel free to call or email.
My concern is the 5 year MIP. Of course if you sold the home it would be gone and if you refinaced it would also be gone but you will need enought equity in the home. At least 80 %. However if you have a contract with FHA that you will not cancel that for at least 5 years you may have some kind of pre pay penalty. I would contact your lender to confirm what the actual contract says.
The FHA Mortgage Insurance Premiums, mostly commonly referred to as MIP, are charged by HUD to protect investors against default. Using these premiums paid into a fund, HUD Guarantees the performance of every FHA loan and protects a percentage of the lender's investment. In return, this mandatory premium enables borrowers who might not otherwise fit within Freddie/Fannie conventional guidelines, to receive funding for the purpose of buying a home or refinancing at conventional mortgage rates.