Forgotten Your Password?

Need to Register?

Question Icon

If I convert my loan from FHA to conventional, do I get a refund on upfront MI paid?

by eryn.halloway882 from Morristown, New Jersey. Jun 24th 2016 Reply


Ted Ark (tark@goldmortgage.com)
#32 ranked lender in New Jersey - 34 contributions

When you "converting" from FHA to Conventional financing there is not refund of FHA premium. FHA to FHA will allow for a portion of the upfront MI to be eligible for a prorated refund.

Jun 24th 2016
0
0
Scott Fix (ScottFix)
#1330 ranked lender in California - 184 contributions

Unfortunately no, unless you meet special circumstances. You can look up more information on this at https://entp.hud.gov/dsrs/refunds/Now, while looking for a conventional loan, look at the fees to see if the mortgage broker is rolling in mortgage insurance to your closing costs. Many who refinance are told that they do not have MI, but are really pre-paying for coverage through fees at closing. Do not fall prey to that scenario. Current regulations state that you can request a conventional lender discontinue MI at 80% LTV and it is mandatory for a conventional lender to cease MI at 78% LTV. Shop your rates and your brokers. Try the old school approach by finding a local loan professional to deal with during the entire process instead of an online solution. Best of luck during your refinance process. Scott.

Jun 25th 2016
0
0
Lorne Harvey (lorneharvey)
#81 ranked lender in Washington - 419 contributions

No, only on an FHA Streamline and your current mortgage is less than 3 years old.

Jun 25th 2016
0
0
Subscribe to our news feed.