Real Estate Zing
 USA Real Estate  USA Cities  Real Estate Agents List  Fannie Mae  Freddie Mac
 Home» Upfront MIP

FHA Upfront MIP

FHA UFMIP or Federal Housing Administration upfront mortgage insurance premium is a portion of the premium you pay to FHA for insuring your loan. This is necessary as FHA takes the full responsibility of repaying the loan amount should a borrower defaults. The insurance premium one pays is of two kinds – one paid at the time of closing and the other calculated annually, but paid monthly by the borrower. The first kind is what known as the Upfront MIP.

The word ‘upfront’ does not mean that you are required to pay the premium in hard cash at closing. Instead the UFMIP is rolled into your mortgage increasing the total amount you borrow from an FHA-approved lender. For example, if you have borrowed $100,000 and the calculation to your UFMIP comes out to be $2,250, the total loan amount would become $102,250. In most cases, the upfront premium is 1 percent of the loan amount, which may vary depending on the type of mortgage and when a case number is assigned by the Federal Housing Administration.

FHA Upfront MIP Rates



Here is the revised FHA UFMIP chart for the rates applicable in 2011.

Cases assigned on or after 10/04/10:
Purchase Money and Credit Qualifying Refinance 1.00%
Streamline Refinance 1.00%
HECM Standard 2.00%
HECM Saver 0.01%
Cases assigned 04/05//10 through 10/03/10:
Purchase Money and Credit Qualifying Refinance 2.25%
Streamline Refinance 2.25%
HECM Standard 2.00%
Cases assigned through 04/04/10:
Purchase Money and Credit Qualifying Refinance 1.75%
Streamline Refinance 1.50%
HECM Standard 2.00%

Some of the FHA mortgage insurance premiums may also be tax deductible. Changes have been made in the legislation to make certain purchase and refinance transactions closed between 2007 through 2010 eligible for a deduction. For more information in this regard, one should contact the Internal Revenue Service (IRS) or consult a professional tax advisor.

FHA UFMIP Refund



If you have paid off your FHA mortgage without ever defaulting on a monthly payment you may be entitled to receive a portion of the upfront MIP. Known as FHA UFMIP Refund, it offers you a chance to get back the money you have given to FHA in order to help the agency provide enough coverage for your mortgage and offer flexible underwriting terms in lieu of it.

The refund amount varies from case to case and depends on when the loan was insured and when it was paid off. More information in this regard can be had from the HUD website, where you can refer to the specific section of Handbook 4155.2 dealing with FHA Upfront MIP refund guidelines. There are calculator and other resources as well that will allow you to calculate the applicable mortgage insurance premiums under different loan situations.

Website: www.hud.gov




.
FHA
203K
Approved Condos
Approval
Condos
First Time Home Buyer
Financing
Down Payment
Connection
Rates
Credit Score
Appraisal
Bad Credit Home Loans
Bank of America
Guidelines 2011
Guidelines
Requirements
Streamline
Home Loans
Homes
Housing
Hud
Lenders
Mip
Calculator
Insurance
Pmi
Programs
Qualifications-2011
Refinance
Streamline Refinance
Inspection
Underwriting
Short Sale
Rental
Foreclosure
Mobile Home
New Construction
Handbook
203b
Form
Short Refinance
Reverse Mortgage
HECM
ARM
Closing Costs
Escrow
Funding Fee
Anti Flipping
HAMP
FHA Limits
Jumbo Loan
Lending
Energy Efficient Mortgage EEM
Rules
Wells Fargo
Title 1-2 Loan