A great deal of reader questions have come in about the FHA’s recent move to cut the annual mortgage insurance premium on FHA loans with case numbers assigned on or after January 26 2015. We thought it was a good time to remind our readers and clarify what the FHA has announced with respect to mortgage loans affected by this new rule.
Which mortgage loans are affected by the FHA MIP cuts? According to the FHA mortgagee letter (ML) announcing the cuts, “This ML reduces the rate for annual MIP for all Title II forward mortgages, with terms greater than 15 years, except;
–single family forward streamline refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009;
–Section 247 mortgages (Hawaiian Homelands)
Borrowers should know that FHA loans affected by the MIP cuts are those with FHA Case Numbers assigned on or after January 26, 2015. Some borrowers may have applied for loans in the middle of the change to the new lower MIP requirements. For borrowers who have FHA loans that HAVE NOT YET CLOSED, your lender may be able to cancel your existing FHA case number and have a new one assigned.
Talk to your lender about this option–and don’t delay, this is ONLY possible for 30 days beyond the original announcement of the case number cancellation issue which was dated January 9 2015.
If you have further questions about whether your loan might be eligible for the lower MIP, talk to your loan officer, but remember that the new lower MIP is not available to you if your loan has already closed prior to January 26 2015.
Do you have questions about FHA home loans? Ask us in the comments section. All comments are held for review.