Mortgage Insurance Refunds
FHA loan handbook, HUD 4000.1 states that a refund is available if the borrower is refinancing an FHA mortgage to another FHA mortgage within the first 3 years. This schedule is a pro-rated refund based upon the length that you have been on the loan.
“If the Borrower is refinancing their current FHA-insured Mortgage to another FHA- insured Mortgage within 3 years, a refund credit is applied to reduce the amount of the Upfront Mortgage Insurance Premium (UFMIP) paid on the refinanced Mortgage, according to the refund schedule…”
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