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If I refinance an FHA mortgage before the new PMI rules take effect, will I have to pay premiums for the life of the loan?

by CFeldman from Auburn, Maine. Mar 14th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

FHA rules are based on the date the FHA case number is ordered for your file.. if you apply before April 1st, then you will be under the lower MI and it's subject to cancelation.. You don't have to close your loan before April 1st.. Your lender just has to order the case number prior to that date.. Once the case number is ordered, it's good for 6 months, so you have all that time to get your deal closed.. If you wait till after April 1st to apply and have the case number ordered, then you would be subject to the higher premium and it will be there for the life of the loan.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Mar 14th 2013
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Peter Savino (855411LEND)
#100 ranked lender in New Jersey - 332 contributions

No, you are safe !

Mar 14th 2013
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Mary Chris Gallo (MaryChrisGallo)
#48 ranked lender in Minnesota - 116 contributions

No. The rules that are changing, which require borrowers to pay MMI for the life of the loan, only affect loans where the FHA Case number is assigned on or after June 3, 2013.

Mar 14th 2013
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Ray Lewis (RayLewis)
#0 ranked lender in Texas - 35 contributions

You would not have to pay the premiums for the life of the loan, as long as it closes prior to the revised effective date. Refinance before June and you'll be under the current regulations. Please feel free to call or email me and I can help you refinance before then. Ray at 254-449-7196 or rlewis@englending.com

Mar 14th 2013
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Richard Airey (richardairey)
#3 ranked lender in Maine - 662 contributions

Just make sure your lender pulls your FHA Case # before June 3, 2013.

Mar 14th 2013
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Richard Airey (richardairey)
#3 ranked lender in Maine - 662 contributions

Just make sure your lender pulls your FHA Case # before the June 3 deadline.

Mar 14th 2013
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

Do it before June!! Your good.

Mar 14th 2013
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

No you will only be required to pay it for 5 years unless you refinance to a conventional loan prior to that. Make sure you get your Case Number pulled prior to April 1st. to be safe.

Mar 14th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Work with one of the fine lenders on this forum, and you will be fine.

Mar 14th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Correction.. Increased MI goes into effect on case numbers ordered on or after April 1st.. the "Life of the Loan" rules go into effect for case numbers ordered on or after June 3rd... Here's the link to FHA's Mortgagee letter... http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Mar 14th 2013
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Raymond Denton (Raymond)
#10 ranked lender in Ohio - 224 contributions

No.

Mar 14th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

No you won't

Mar 14th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

William above stated it great. Apply at least a couple days with a Lender411 loan officer before April 1st then have a case or pulled and you will be good for 6 months.

Mar 14th 2013
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Bartolomeo Castelli (BartCastelli)
#33 ranked lender in Missouri - 1,056 contributions

FHA rules are based on the date the FHA case number is ordered for your file. The new rules will have the upfront premium going up with all case numbers ordered on or after this date. The PMI rules for the life of the loan will not go into affect until those case numbers are ordered on or after June 3, 2013. Once a case number is ordered, it's good for 6 months, so a good lender should be able to close the loan in that time. Please note that changes to annual MIP does not apply to Streamline Refinances that refinance existing FHA loans that were endorsed on or before May 31, 2009. --->>> If you are interested on talking about this further, I am a license broker here in the State of Missouri, but have other loan officers in my office that are able to handle loans in the midwest. Give me a call at 314-744-7806 to see if I can be of any assistance to you.

Mar 14th 2013
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Bartolomeo Castelli (BartCastelli)
#33 ranked lender in Missouri - 1,056 contributions

FHA rules are based on the date the FHA case number is ordered for your file. The new rules will apply for those Case numbers ordered on or after April 1, 2013. The annual MIP will increase on all FHA loans effective this date. In regards to your specific question, the FHA case numbers assigned on or after June 3, 2013, FHA will collect the annual MIP for the maximum duration permitted under statute. Some will be for life where there are some that will only be for 11 years, depending on various factors such as Term of the Loan and the Loan to Value when the loan originated. Changes to annual MIP does not apply to Streamline refinances that refinance existing FHA loans that were endorsed on or before May 31, 2009. I am a Broker here in the State of Missouri. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 314-744-7806. Castelli.ValuedLender.com.

Mar 14th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,970 contributions

No

Mar 14th 2013
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Jason Robinson (CFIsupport)
#58 ranked lender in Georgia - 106 contributions

As long as you have your case number issued before 03/31/2013

Mar 14th 2013
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Michael Bardy (LendingPro)
#24 ranked lender in Ohio - 72 contributions

Like everyone has said, don't wait. Start your application and ensure your lender obtains your case # now.

Mar 14th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

As long as your case number is obtainied before 6/1/13 your wont be subject to the new rules.

Mar 14th 2013
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Jason Vondrak (jvondrak)
#216 ranked lender in California - 1,741 contributions

As long as you completed your refinance before June, you will not be subject to pay for mortgage insurance for the life of the loan.

Mar 14th 2013
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Larry Lechel (Larry@GenevaFi.com)
#16 ranked lender in Indiana - 38 contributions

Go to my facebook page and scroll down to a post from yesterday and you will see the Mortgagee letter directly from the Department of Housing and Urban Development. Simply search for "Larry Lechel"

Mar 14th 2013
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Brendan Fontaine (brendan.fontaine)
#2 ranked lender in Maine - 89 contributions

My office is in Auburn. Feel free to stop by and we can review your options in person.

Mar 14th 2013
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Brendan Fontaine (brendan.fontaine)
#2 ranked lender in Maine - 89 contributions

I am located in Auburn as well. Why don't you stop by so we can review your options!

Mar 14th 2013
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Will Zinn (mainewill)
#7 ranked lender in Maine - 20 contributions

C, These folks are correct about pulling case numbers by June 3rd. The April 1st deadline only changed the monthly MI factor by 10 basis points. It's the June 3rd deadline that adds "lifetimeMI". What a ripoff.... I'f I were you I'd be looking non-FHA options. I've been taking a lot of my past clients out of FHA loans all together. There are much better deals available right now. Give me a shout if you want me to tell you about them. Will 517-2207

Apr 17th 2013
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Chris Caporiccio (chris.caporiccio@wellsfargo.com)
#15 ranked lender in New Hampshire - 31 contributions

I'm and FHA professional; send me an email so I can answer all your questions, before you make any type of decision. Chris.Caporiccio@wellsfargo.com

Nov 4th 2013
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