- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Mortgage Insurance change from 1.35% to .85%
Posted on 2/9/15 at 7:48 pm
Posted on 2/9/15 at 7:48 pm
I received a letter today encouraging me to refinance my house because loans after Jan 26, 2015 are eligible for reduced MIP from 1.35% to .85%. This would save me $1275 a year. Is this rate supposed to be automatically reduced on my existing loan by law? Or do I have to call them to request?
3
Posted on 2/9/15 at 8:13 pm to Bigsike
I am not positive,but I think you would have to refinance your fha.
Posted on 2/9/15 at 8:20 pm to Bigsike
The MIP reduction is for new loans only. If you want to take advantage, you would have to refinance. FHA does offer a streamline refinance program, which I think can be used here.
Posted on 2/10/15 at 7:23 am to LSUFanHouston
It could be beneficial for you. If your current FHA interest rate is significantly higher than market. FHA right now is around 3.5. You're knocking off .5% from your APR and hopefully knocking off .5% or more from interest rate. Do the math on that or tell us your loan amount.
Fha to fha refi isn't always the best if you are close to having enough equity to refi to conventional. However, if your recently bought and you can quickly recoup your new closing costs by saving monthly, there's a chance it's worth it.
Fha to fha refi isn't always the best if you are close to having enough equity to refi to conventional. However, if your recently bought and you can quickly recoup your new closing costs by saving monthly, there's a chance it's worth it.
Posted on 2/10/15 at 8:30 am to SomethingLikeA
$251,000 left on a $300,000 house.
3.75% fixed interest rate
I could wait until I hit $240,000 and the MIP goes away.
3.75% fixed interest rate
I could wait until I hit $240,000 and the MIP goes away.
Posted on 2/10/15 at 8:44 am to Bigsike
How many years remain on your loan?
I'm not sure you are going to get significantly lower on interest rate.
When will you hit 240K? Run an amortization table.
I'm not sure you are going to get significantly lower on interest rate.
When will you hit 240K? Run an amortization table.
Posted on 2/10/15 at 9:05 am to Bigsike
The MIP would not automatically reduce on your existing FHA, you would have to call a mortgage company and refinance.
However, FHA mortgage insurance (MIP) became permanent (for the life of loan) effective June 2013. If you closed on your existing FHA loan before June 2013 then your MIP is not for the life of the loan, but refinancing it now over 80% LTV would make it for the life of the new loan.
My advice would be to call your current mortgage holder to confirm when the MIP will fall off your existing loan.
You could possibly knock down your interest rate as much as 0.375-0.5%, but you will need to run the amortization schedules to determine whether a refinance would be worth it by making MIP permanent.
However, FHA mortgage insurance (MIP) became permanent (for the life of loan) effective June 2013. If you closed on your existing FHA loan before June 2013 then your MIP is not for the life of the loan, but refinancing it now over 80% LTV would make it for the life of the new loan.
My advice would be to call your current mortgage holder to confirm when the MIP will fall off your existing loan.
You could possibly knock down your interest rate as much as 0.375-0.5%, but you will need to run the amortization schedules to determine whether a refinance would be worth it by making MIP permanent.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News