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Thursday, January 08, 2015

Clarification: Current FHA-insured borrowers WILL need to Refinance to obtain lower MIP

by Calculated Risk on 1/08/2015 04:33:00 PM

Just to be clear, current FHA-insured borrowers will need to refinance to obtain the 0.85% annual Mortgage Insurance Premium (MIP).

New borrowers will obtain the lower MIP automatically.

HUD will send out a letter very soon clarifying what this means for borrowers currently in the process of obtaining an FHA-insured loan.

HUD estimates that approximately 100,000 to 200,000 FHA-insured borrowers will refinance in the next year.