Home Buying in Melbourne>Question Details

Staggent, Home Owner in Melbourne, FL

Refund of my MIP

Asked by Staggent, Melbourne, FL Tue Apr 23, 2013

I was just told by a HUD hotline that I get no refund on the ridiculously large amount of cash I paid upfront on MIP with a FHA Loan. I asked repeatedly about the ridiculous costs of paying the MIP up front and then also getting monthly payments tacked on top of it, and I was repeatedly told "I will get a refund." I am curious if anyone would think I have a recourse against my mortgage broker or title agency for this. I'm sure somewhere in my mound of paperwork you get when you close, there is probably a print stating that I get no refund if I sell my home, and some people will say that's my fault for not spending the hours it would take to read all of that; but isn't it the mortgage brokers and the title agencies responsibility to answer my questions upfront and honestly? Either they didn't know or they lied to me, and I see both as being inexcusable.

Help the community by answering this question:


I spoke with my Mortgage professional and this is what they told me:

Upfront MIP is usually refunded if you pay off your mortgage within 5 years. Monthly PMI is based upon 78% of your original amount, usually when you reach 78% of the ORIGINAL amount of your mortgage it will stop. Everything is subject to change.
You should talk with your mortgage profession al or a real estate attorney to check and see if this is still valid.

If I can be of further assistance, please feel free to contact me.

Joan Willis
Brevard's Best Realty, Inc.
0 votes Thank Flag Link Tue Apr 23, 2013
Thank You Joan! I appreciate that helpful advice. The lender I use is in Melbourne and she is very reputable, so I would hope that she wasn't lying when her and the title agency told me that the upfront MIP is refundable. She just seems to be dodging the question, but I know she is extremely busy. Hopefully she will have the same information you did. Otherwise it just seems that FHAs are flat out robbery!
Flag Tue Apr 23, 2013
You can sue anyone for anything... I don't think you'll get anywhere - unless you were told in writing that you'll get a refund.
0 votes Thank Flag Link Tue Apr 23, 2013
You should consult with an attorney.
0 votes Thank Flag Link Tue Apr 23, 2013
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