Can anyone explain MIP rules for a FHA Streamline refinance? (loan, loan) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

truckinusa · 04-24-2017, 09:58 PM

I recently refinanced a loan from May of 2007 thru the FHA Streamline refinance program. I believe my original mortgage had a MIP of .50% and this new one has MIP of .55% From what I am reading if the LTV is below 90% then you are stuck with MIP for another 11 years! Is this correct? The new loan is for $127,000 and the original loan was $144,000 in 2007. I got my information from this HUD document. https://portal.hud.gov/hudportal/doc...5-01mlatch.pdf

jaynarie · 04-25-2017, 05:50 AM

All FHA loans will have MIP, regardless of equity/LTV. The minimum is 11 years. Many (most?) are for the life of the loan.
Can you not qualify for a conventional loan?

truckinusa · 04-25-2017, 06:24 AM

Nope. It lowered my payment $150 so I figured it was worth it for no cost. Only bad thing is that 11 year MIP. The balance is low enough maybe I can speed up the repayment to less than 11 years?

thelopez2 · 04-25-2017, 08:33 AM

Quote:

Originally Posted by truckinusa

Nope. It lowered my payment $150 so I figured it was worth it for no cost. Only bad thing is that 11 year MIP. The balance is low enough maybe I can speed up the repayment to less than 11 years?

Can't remove it early if that is the question. Have to refinance to non FHA if you don't want MI