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         FHA Refunds of MIP           

Does HUD owe you a refund?

If you have paid off a FHA loan through the sale of the property or are refinancing from an FHA loan to a non FHA loan, you may be eligible for a fha mortgage insurance premium (MIP) refund if you originated your loan after September 1, 1983, but before December 8, 2004, paid an upfront mortgage insurance premium at closing, and did not default on your mortgage payments.  

There are several exception however, that may apply to your situation.  FHA borrower's that fit into any one of the following situations may not be eligible for a fha refund:

FHA to FHA refinances:  When an FHA loan is refinanced, the refund from the old premium may be applied toward the upfront premium required for the new loan.  After December 8th, the refund schedule has been reduced to 3 years and only if refinancing from one FHA loan to another.

Assumptions:  When an FHA insured loan is assumed, the insurance remains in force (i.e. the seller receives no refund).  The new owner of the property may be eligible for a refund when the loan is paid in full.

Claims:  When a mortgage company submits a claim to HUD for insurance benefits, no refund is due the homeowner.

If you do not receive a check or an application for refund from HUD within 45 days after you have paid off your loan, check with your mortgage company to confirm that they have sent HUD a Request for Termination.  If they confirm that the correct termination information was sent, contact HUD.  If you do not receive a refund or any other documentation from HUD within 60 days from the date you mailed your claim form, contact HUD immediately.

Former FHA borrowers who think they might be due a refund can call a toll free number, 1-800-697-6967, or write HUD at P.O. Box 23669, Washington DC 20026-3699. Or you can look for your name with the HUD Refund Search Form 

To calculate your estimated MIP refund, multiply your original upfront mortgage insurance premium with the factor listed in the table below. You may find this number on your final settlement papers. The form is known as a HUD-1. It should be listed on line # 902.

For Mortgages closed on or after December 8,2004.

You will not receive any refund unless your are refinancing to another FHA loan.  Your refund will then be applied towards you new mortgage insurance premium base on the schedule below.

 

     Upfront Mortgage Insurance Premium Refund Percentages

 

                                          Month of Year

 

 

 

 

Year

1

2

3

4

5

6

7

8

9

10

11

12

1

80

78

76

74

72

70

68

66

64

62

60

58

2

56

54

52

50

48

46

44

42

40

38

36

34

3

32

30

28

26

24

22

20

18

16

14

12

10

 

For mortgages closed on or after January 1, 2001:
 

MIP Refund Factors

Year 1

Year 2

Year 3

Month 1

0.9750

Month 13

0.7333

Month 25

0.5333

Month 2

0.9500

Month 14

0.7167

Month 26

0.5167

Month 3

0.9250

Month 15

0.7000

Month 27

0.5000

Month 4

0.9000

Month 16

0.6833

Month 28

0.4833

Month 5

0.8750

Month 17

0.6667

Month 29

0.4667

Month 6

0.8500

Month 18

0.6500

Month 30

0.4500

Month 7

0.8333

Month 19

0.6333

Month 31

0.4333

Month 8

0.8167

Month 20

0.6167

Month 32

0.4167

Month 9

0.8000

Month 21

0.6000

Month 33

0.4000

Month 10

0.7833

Month 22

0.5833

Month 34

0.3833

Month 11

0.7667

Month 23

0.5667

Month 35

0.3667

Month 12

0.7500

Month 24

0.5500

Month 36

0.3500

Year 4

Year 5

Month 37

0.3333

Month 49

0.1625

Month 38

0.3167

Month 50

0.1500

Month 39

0.3000

Month 51

0.1375

Month 40

0.2833

Month 52

0.1250

Month 41

0.2677

Month 53

0.1125

Month 42

0.2500

Month 54

0.1000

Month 43

0.2375

Month 55

0.0833

Month 44

0.2250

Month 56

0.0667

Month 45

0.2125

Month 57

0.0500

Month 46

0.2000

Month 58

0.0333

Month 47

0.1875

Month 59

0.0167

Month 48

0.1750

Month 60

0.0000

For mortgages closed after September 1, 1983 and before January 1, 2001:

MIP Refund Factors

Year 1

Year 3

Year 5

Month 1

0.9917

Month 25

0.7835

Month 49

0.3720

Month 2

0.9833

Month 26

0.7670

Month 50

0.3580

Month 3

0.9750

Month 27

0.7505

Month 51

0.3440

Month 4

0.9667

Month 28

0.7340

Month 52

0.3300

Month 5

0.9583

Month 29

0.7175

Month 53

0.3160

Month 6

0.9500

Month 30

0.7010

Month 54

0.3020

Month 7

0.9417

Month 31

0.6845

Month 55

0.2880

Month 8

0.9333

Month 32

0.6680

Month 56

0.2740

Month 9

0.9250

Month 33

0.6515

Month 57

0.2600

Month 10

0.9167

Month 34

0.6350

Month 58

0.2460

Month 11

0.9083

Month 35

0.6185

Month 59

0.2320

Month 12

0.9000

Month 36

0.6020

Month 60

0.2180

Year 2

Year 4

Year 6

Month 13

0.8917

Month 37

0.5840

Month 61

0.2068

Month 14

0.8833

Month 38

0.5660

Month 62

0.1957

Month 15

0.8750

Month 39

0.5480

Month 63

0.1845

Month 16

0.8667

Month 40

0.5300

Month 64

0.1733

Month 17

0.8583

Month 41

0.5120

Month 65

0.1622

Month 18

0.8500

Month 42

0.4940

Month 66

0.1510

Month 19

0.8417

Month 43

0.4760

Month 67

0.1398

Month 20

0.8333

Month 44

0.4580

Month 68

0.1287

Month 21

0.8250

Month 45

0.4400

Month 69

0.1175

Month 22

0.8167

Month 46

0.4220

Month 70

0.1063

Month 23

0.8083

Month 47

0.4040

Month 71

0.0952

Month 24

0.8000

Month 48

0.3860

Month 72

0.0840

Year 7

Month 73

0.0770

Month 74

0.0700

Month 75

0.0630

Month 76

0.0560

Month 77

0.0490

Month 78

0.420

Month 79

0.0350

Month 80

0.0280

Month 81

0.0210

Month 82

0.0140

Month 83

0.0070

Month 84

0.0000

 

 

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