Upfront Mortgage Insurance Premium

Posted on January 2, 2009
Filed Under FHA Home Loans, Home Loans | 3 Comments

UFMIP – Upfront Mortgage Insurance Premium is the insurance used to protect the lenders in the event of a mortgage default.   It is important to know how to calculate the UFMIP to arrive at your final loan amount and total monthly payment.  Learn how to calculate the maximum mortgage amount.

FHA Refinance Loans – Max Loan to Value (LTV) and UFMIP

Rate and Term Refinance – 97.75% Max LTV + 1.75% UFMIP

FHA to FHA Streamline with Appraisal – 97.75 Max LTV + 1.50% UFMIP

FHA to FHA Streamline without Appraisal – Lower of 2 calculations + 1.5% UFMIP

Cash out Refinances – 95% and 85% – 1.75% UFMIP

All cash out refinance transactions over 85% LTV will require a second appraisal.

Monthly MIP for Purchase loans, Full qualifying refinance loans and streamline refinances is as follows:

30 Year Mortgage

LTV < 95% = 50 Basis Points
LTV > 95% = 55 Basis Points

15 Year Mortgage

LTV < 95% = None
LTV > 95% = 25 Basis Points

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