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FHA Mortgage Insurance Refund
Author David Schneider | Dec 09,2007
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It’s not everyday that you are eligible to receive a refund on your mortgage. In fact, you may have never heard of such a thing. A mortgage is not like a shirt that you can return to the store if it doesn’t fit. However, there are some instances where a mortgage borrower may be entitled to a refund.
Borrowers who have Federal Housing Administration (FHA) insured mortgages might be eligible for a refund on part of their mortgages insurance premium. There is also a possibility to receive a portion of any excess earnings on an FHA mutual mortgage insurance fund. If the fund obtains earnings in excess, then a share of these earnings are distributed to FHA insured mortgage holders.
Eligibility for FHA Mortgage Insurance Refund
FHA borrowers must meet certain criteria in order to be eligible for a portion of the premium refunded on mortgage insurance. First, borrowers must have obtained an FHA mortgage after September 1, 1983. Second, borrowers must have paid the mortgage insurance premium upfront and not defaulted on mortgage payments. If you are not sure if you paid the mortgage insurance premium upfront, check your settlement paperwork or contact your mortgage lender.
Eligibility to receive a portion of a share of excess earnings has a different set of criteria. Borrowers must have established a mortgage loan before September 1, 1983. Borrowers also must have been paying on the loan for more than seven years. Additionally, HUD must have processed the FHA insurance termination before November 5, 1990.
FHA Mortgage Insurance Refund Amount
Different borrowers are eligible for different amounts of refund. It is not a flat fee structure, but rather determined by the number of insured months after the termination of the loan. For example, loans that ended before January 1, 2001 are not eligible for a refund after the seventh year of having the loan. For loans that ended after January 1, 2001, borrowers are not eligible for a refund after the fifth year of having the mortgage.
Once you have determined that you qualify for a refund, contact your mortgage company. In order to begin the refund process, your mortgage company needs to contact HUD. HUD will qualify and process the request.
It’s not everyday that you are eligible to receive a refund on your mortgage. In fact, you may have never heard of such a thing. A mortgage is not like a shirt that you can return to the store if it doesn’t fit. However, there are some instances where a mortgage borrower may be entitled to a refund.
Borrowers who have Federal Housing Administration (FHA) insured mortgages might be eligible for a refund on part of their mortgages insurance premium. There is also a possibility to receive a portion of any excess earnings on an FHA mutual mortgage insurance fund. If the fund obtains earnings in excess, then a share of these earnings are distributed to FHA insured mortgage holders.
Eligibility for FHA Mortgage Insurance Refund
FHA borrowers must meet certain criteria in order to be eligible for a portion of the premium refunded on mortgage insurance. First, borrowers must have obtained an FHA mortgage after September 1, 1983. Second, borrowers must have paid the mortgage insurance premium upfront and not defaulted on mortgage payments. If you are not sure if you paid the mortgage insurance premium upfront, check your settlement paperwork or contact your mortgage lender.
Eligibility to receive a portion of a share of excess earnings has a different set of criteria. Borrowers must have established a mortgage loan before September 1, 1983. Borrowers also must have been paying on the loan for more than seven years. Additionally, HUD must have processed the FHA insurance termination before November 5, 1990.
FHA Mortgage Insurance Refund Amount
Different borrowers are eligible for different amounts of refund. It is not a flat fee structure, but rather determined by the number of insured months after the termination of the loan. For example, loans that ended before January 1, 2001 are not eligible for a refund after the seventh year of having the loan. For loans that ended after January 1, 2001, borrowers are not eligible for a refund after the fifth year of having the mortgage.
Once you have determined that you qualify for a refund, contact your mortgage company. In order to begin the refund process, your mortgage company needs to contact HUD. HUD will qualify and process the request. |
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