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Will I have to pay FHA PMI for the duration of the loan if I refinance now that the rules have changed?

by DCaire from Minneapolis, Minnesota. Apr 1st 2013 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,360 contributions

Yes.. you will have to pay off your loan or refinance to remove the MI as of today forward.. however if your loan was initiated prior to June 2009, you would qualify for the lower UFMIP, and lower Annual MI, but again, it's now 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

Apr 1st 2013
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Joe Metzler (JoeMetzler)
#2 ranked lender in Minnesota - 3,712 contributions

Not if you act quickly. The higher PMI rule went into effect today. The mortgage insurance for the "life of the loan" has NOT gone into effect yet, but will shortly. My office is right here in St Paul, call me at 651-552-3681 or visit www.MortgagesUnlimited.biz for more info.

Apr 1st 2013
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Not Necessary it depends on your FHA case number date and Loan to value. But it will be 11 years or the life of loan if you are Post May of 09.Michael SnyderMariner Finance

Apr 1st 2013
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Dan Eveland (daneveland)
#21 ranked lender in Minnesota - 15 contributions

That rule does not apply until June 1st. If your current loan was insured by FHA by May 31, 2009 then you'll continue on with about the same mortgage insurance premium that you have now along with a little to nothing upfront mortgage insurance fee. Call Dan at 763-746-9919 - Thanks and good question!

Apr 1st 2013
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David Kosmecki (David_Kosmecki)
#38 ranked lender in Minnesota - 256 contributions

You won't like my answer but based upon my 35 years in the industry, it's the correct answer. Starting today, All case numbers pulled for new FHA mortgages have the mortgage insurance running until the loan is paid off. We were busy Friday pulling case numbers on people deciding because on this change. Many people stay in thier home today less than 9 years and keep thier mortgage less than 5. When you have sufficient equity (20% or more) you will be able to refinance to remove the mortgage insurance if you are staying. Yes this change is unfornutate but 99% of the borrowers don't stay in the mortgage long enough to see the MI drop anyway.If and when I can help, give me a call: 763-519-1100

Apr 1st 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,360 contributions

For clarification.. the higher MI factors are in effect as of today.. the new guidelines for automatic cancelation go into effect June 3rd, and it's based on when the FHA case number is ordered, not when you close your loan.. so there's still time before it goes into effect.. here's FHA's Mortgagee letter for your reference.. 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

Apr 1st 2013
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Ken Graczak - NMLS 184394 (KenGraczak)
#30 ranked lender in Minnesota - 21 contributions

If you go here - http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf you will see the actual mortgagee letter with the changes. Some lenders are requiring the changes earlier than others. I am a broker and as long as your FHA case number is assigned on or before May 31, 2013 you should be able to refinance without the lifetime or 11 year mortgage insurance. Let me know if you want further information 612-516-5626 Ken

Apr 1st 2013
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Mary Chris Gallo (MaryChrisGallo)
#49 ranked lender in Minnesota - 116 contributions

The change in FHA's guidelines that will require borrowers to pay Monthly Mortgage Insurance (MMI) for the life of the loan goes into effect with case numbers requested on or after June 3rd.If your case number is pulled before then, you'll be just fine. If you'd like to discuss the details of a potential refinance - and whether or not it would be in your best financial interest - please feel free to contact me at 952.250.6424.

Apr 1st 2013
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Tim Swierczek (TimSwierczek)
#25 ranked lender in Minnesota - 22 contributions

Most of the aswers here are correct, William from from AZ did not really get it right. If you act now you can beat the June 1st deadline for permenant mortgage insurance.

Apr 1st 2013
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Michael Bardy (LendingPro)
#25 ranked lender in Ohio - 72 contributions

NoThe life of the loan mortgage insurance does not go into affect until June 1st, 2013. You should act now if you believe you will move forward.

Apr 1st 2013
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Steve Justice (sjusti_716_763)
#29 ranked lender in Minnesota - 3 contributions

the official rule changes starting today (April 1st) are not as quite onerous as initially indicated. Steve Justice 612-305-2287 Golden Valley, BNC National Bank

Apr 1st 2013
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Peter Botros (PeterBotros)
#71 ranked lender in New York - 895 contributions

That rule does not apply until June. As long as you apply before then, you will not be subject to the "life of loan" MI.

Apr 1st 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Mostly like yes. read the answers above and then apply it to your situation. There are some variations with it if you are streamline refinancing it, credit refi, or a purchase.

Apr 1st 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

It depends on your current loan and its origination date.

Apr 1st 2013
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

You would need to pay for at least 11 years unless you finance into a conventional loan during that time. Now that FHA has raised their MI rates there is already stronger programs coming out. Give it another year or two and you should be able to refinance out of the FHA loan fairly easy.

Apr 1st 2013
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