U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 03-06-2009, 06:15 PM
 
148 posts, read 571,292 times
Reputation: 83

Advertisements

The broker that got us the original loan for our current home sent us some GFEs for a refi. He also mentioned that we'd get back a somewhat substantial amount from FHA since we'd be refi-ing into a conventional loan.

However, that broker is acting as shady as he was the first time around, and though we were supposed to close at the end of Feb, it never happened and they haven't so much as given us a phone call to explain why.

So I called another broker who had recently sent out a solicitation. He's pushing a FHA streamline product and says that FHA doesn't rebate anyone anything.

I'm probably not going with either broker since broker A is shady and broker B started to strong-arm/get way over-defensive when I asked a few harmless questions regarding the product he was pushing ("we'll pay the closing costs..." I asked exactly where that money was coming from for him to be "paying" our closing costs)
...but I'd still like to know what's the case with the FHA rebate. It's hard to believe that shady broker A is outright lying (at least we haven't had THAT particular experience with him in the past) so what's the case here?

Thanks in advance...

OH, and before I forget: Broker A told us to wait 6 months to refi assuming a new appraisal would then be accepted, etc etc.
Broker B swears up and down that trying to get a new mortgage without a (1 yr) seasoned loan is downright impossible. (then continues to get back to pushing the streamline)

Which is closer to likely?

Last edited by enigmakairos; 03-06-2009 at 06:25 PM.. Reason: added question about seasoning
Reply With Quote Quick reply to this message

 
Old 03-06-2009, 06:33 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 5,994,417 times
Reputation: 952
If you streamline an FHA or refi into a conventional you will absolutely get a portion of your UFMIP back, on a sliding scale. Broker A likely told you to wait 6 months to avoid a yield spread premium buyback. Broker B is right in the sense that if you have owned the home less than 12 months there isn't a lender around (that I know of) that will allow you to use the current appraised value, and will instead go off of the original purchase price. As for how broker B would pay the closing costs, a combination of UFMIP refund, escrow account refund (if applied to the payoff), and yield spread premium is what would cover the closing costs.
Reply With Quote Quick reply to this message
 
Old 03-06-2009, 06:47 PM
 
148 posts, read 571,292 times
Reputation: 83
Thanks so much! So now the question is why can't we find someone this up-front to work with here? Sheesh.
Reply With Quote Quick reply to this message
 
Old 03-06-2009, 06:47 PM
 
Location: Cary NC
553 posts, read 2,043,120 times
Reputation: 297
Quote:
Originally Posted by Daddys///M3 View Post
If you streamline an FHA or refi into a conventional you will absolutely get a portion of your UFMIP back, on a sliding scale. Broker A likely told you to wait 6 months to avoid a yield spread premium buyback. Broker B is right in the sense that if you have owned the home less than 12 months there isn't a lender around (that I know of) that will allow you to use the current appraised value, and will instead go off of the original purchase price. As for how broker B would pay the closing costs, a combination of UFMIP refund, escrow account refund (if applied to the payoff), and yield spread premium is what would cover the closing costs.
Hi Daddys///M3, I love your posts! I agree with your statement..partially, if you are refinancing from an FHA to a conventional ther is no refund of premium unless you are refinancing into another FHA loan.

Here is the refund chart:
For Mortgages closed on or after December 8,2004.
You will not receive any refund unless your are refinancing to another FHA loan. Your refund will then be applied towards you new mortgage insurance premium base on the schedule below.
Upfront Mortgage Insurance Premium Refund Percentages
Month of Year
Year 1 2 3 4 5 6 7 8 9 10 11 12
1 80 78 76 74 72 70 68 66 64 62 60 58
2 56 54 52 50 48 46 44 42 40 38 36 34
3 32 30 28 26 24 22 20 18 16 14 12 10

For mortgages closed on or after January 1, 2001:

MIP Refund Factors
Year 1 Year 2 Year 3
Month 1 0.9750 Month 13 0.7333 Month 25 0.5333
Month 2 0.9500 Month 14 0.7167 Month 26 0.5167
Month 3 0.9250 Month 15 0.7000 Month 27 0.5000
Month 4 0.9000 Month 16 0.6833 Month 28 0.4833
Month 5 0.8750 Month 17 0.6667 Month 29 0.4667
Month 6 0.8500 Month 18 0.6500 Month 30 0.4500
Month 7 0.8333 Month 19 0.6333 Month 31 0.4333
Month 8 0.8167 Month 20 0.6167 Month 32 0.4167
Month 9 0.8000 Month 21 0.6000 Month 33 0.4000
Month 10 0.7833 Month 22 0.5833 Month 34 0.3833
Month 11 0.7667 Month 23 0.5667 Month 35 0.3667
Month 12 0.7500 Month 24 0.5500 Month 36 0.3500
Year 4 Year 5
Month 37 0.3333 Month 49 0.1625
Month 38 0.3167 Month 50 0.1500
Month 39 0.3000 Month 51 0.1375
Month 40 0.2833 Month 52 0.1250
Month 41 0.2677 Month 53 0.1125
Month 42 0.2500 Month 54 0.1000
Month 43 0.2375 Month 55 0.0833
Month 44 0.2250 Month 56 0.0667
Month 45 0.2125 Month 57 0.0500
Month 46 0.2000 Month 58 0.0333
Month 47 0.1875 Month 59 0.0167
Month 48 0.1750 Month 60 0.0000
For mortgages closed after September 1, 1983 and before January 1, 2001:
MIP Refund Factors
Year 1 Year 3 Year 5
Month 1 0.9917 Month 25 0.7835 Month 49 0.3720
Month 2 0.9833 Month 26 0.7670 Month 50 0.3580
Month 3 0.9750 Month 27 0.7505 Month 51 0.3440
Month 4 0.9667 Month 28 0.7340 Month 52 0.3300
Month 5 0.9583 Month 29 0.7175 Month 53 0.3160
Month 6 0.9500 Month 30 0.7010 Month 54 0.3020
Month 7 0.9417 Month 31 0.6845 Month 55 0.2880
Month 8 0.9333 Month 32 0.6680 Month 56 0.2740
Month 9 0.9250 Month 33 0.6515 Month 57 0.2600
Month 10 0.9167 Month 34 0.6350 Month 58 0.2460
Month 11 0.9083 Month 35 0.6185 Month 59 0.2320
Month 12 0.9000 Month 36 0.6020 Month 60 0.2180
Year 2 Year 4 Year 6
Month 13 0.8917 Month 37 0.5840 Month 61 0.2068
Month 14 0.8833 Month 38 0.5660 Month 62 0.1957
Month 15 0.8750 Month 39 0.5480 Month 63 0.1845
Month 16 0.8667 Month 40 0.5300 Month 64 0.1733
Month 17 0.8583 Month 41 0.5120 Month 65 0.1622
Month 18 0.8500 Month 42 0.4940 Month 66 0.1510
Month 19 0.8417 Month 43 0.4760 Month 67 0.1398
Month 20 0.8333 Month 44 0.4580 Month 68 0.1287
Month 21 0.8250 Month 45 0.4400 Month 69 0.1175
Month 22 0.8167 Month 46 0.4220 Month 70 0.1063
Month 23 0.8083 Month 47 0.4040 Month 71 0.0952
Month 24 0.8000 Month 48 0.3860 Month 72 0.0840
Year 7
Month 73 0.0770
Month 74 0.0700
Month 75 0.0630
Month 76 0.0560
Month 77 0.0490
Month 78 0.420
Month 79 0.0350
Month 80 0.0280
Month 81 0.0210
Month 82 0.0140
Month 83 0.0070
Month 84 0.0000
Reply With Quote Quick reply to this message
 
Old 03-06-2009, 06:57 PM
 
Location: Cary NC
553 posts, read 2,043,120 times
Reputation: 297
Quote:
Originally Posted by enigmakairos View Post
The broker that got us the original loan for our current home sent us some GFEs for a refi. He also mentioned that we'd get back a somewhat substantial amount from FHA since we'd be refi-ing into a conventional loan.

However, that broker is acting as shady as he was the first time around, and though we were supposed to close at the end of Feb, it never happened and they haven't so much as given us a phone call to explain why.

So I called another broker who had recently sent out a solicitation. He's pushing a FHA streamline product and says that FHA doesn't rebate anyone anything.

I'm probably not going with either broker since broker A is shady and broker B started to strong-arm/get way over-defensive when I asked a few harmless questions regarding the product he was pushing ("we'll pay the closing costs..." I asked exactly where that money was coming from for him to be "paying" our closing costs)
...but I'd still like to know what's the case with the FHA rebate. It's hard to believe that shady broker A is outright lying (at least we haven't had THAT particular experience with him in the past) so what's the case here?

Thanks in advance...

OH, and before I forget: Broker A told us to wait 6 months to refi assuming a new appraisal would then be accepted, etc etc.
Broker B swears up and down that trying to get a new mortgage without a (1 yr) seasoned loan is downright impossible. (then continues to get back to pushing the streamline)

Which is closer to likely?
Not correct-here is the link to HUD that states it is an FHA to FHA refinance.

HUD FHA Homeowners Fact Sheet

Broker A is either green or smoking green...Broker B doesn't want you to know about Yield spread premium. He is afraid that you might get mad at him for making money for his company. At any rate if A is not knowledgeable and can't do something as simple as return his clients phone call and B is not transparent...I think it is time you interview a couple more brokers until you find one that your "gut" tells you is on the level.
Reply With Quote Quick reply to this message
 
Old 03-19-2011, 01:15 PM
 
1 posts, read 4,352 times
Reputation: 10
Does FHA allow a refund of the UFMIP if I refinance to a conventional loan? Section 223 of the Consolidated Appropriations Act 2005 amended Section 203(c)(2)(A) of the National Housing Act to eliminate refunds of the Federal Housing Administrations (FHA) upfront mortgage insurance premiums except when the borrower refinances to another mortgage to be insured by FHA. This elimination of refunds is effective for those mortgages endorsed for insurance on or after December 8th, 2004. Handbook 4155.2: 7.2.i Federal Housing Administration - Frequently Asked Questions.
Reply With Quote Quick reply to this message
 
Old 03-20-2011, 06:06 PM
 
Location: MID ATLANTIC
7,384 posts, read 16,790,620 times
Reputation: 7657
The HUD Link Above has all you need to know:

For any FHA-insured loans with a closing date prior to January 1, 2001, and endorsed before December 8, 2004, no refund is due the homeowner after the end of the seventh year of insurance. For any FHA-insured loans closed on or after January 1, 2001 and endorsed before December 8, 2004, no refund is due the homeowner after the fifth year of insurance. For FHA-insured loans endorsed on or after December 8, 2004, no refund is due the homeowner unless they refinanced to a new FHA-insured loan, and no refund is due these homeowners after the third year of insurance.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top