My husband and I closed on a home on 2/28/07 with an FHA mortgage through HCI Mortgage at 6.5% interest rate. We refinanced this loan to get a better rate (5.75%) with an FHA loan through Freedom Mortgage on July 25, 2009.
We contacted Freedom Mortgage to do a Streamline Refinance because the rates are so low right now and were told that our upfront and annual MIP would be quite high. We really did not understand that. So of course, I had to do some research and after reading through the various posts on myFico and doing reading elsewhere, it is my understanding that all FHA loans endorsed prior to May 31, 2009 are granfathered in. That would mean that upfront we would have to pay .01% of the loan amount in MIP out of pocket (or put into the loan). We would be refinancing $170,000.00, so that would be a whopping $17.00!! As for the annual MIP, we would owe .55%, or $935.00 per year (or $77.92 per month out of escrow). FHA loans endorsed after May 31, 2009 were subject to an upfront MIP of 1.75% of the loan amount, which would be a huge difference from $17.00 - $2,975.00!!! Our annual MIP would be 1.25% of the loan amount (30 year loan with over 95% loan-to-value thanks to the wonderful housing market), making our yearly cost $2,125.00, or $177.08 monthly from escrow.
Who is correct. I think that you go from the original FHA loan, which we endorsed/settled 2/28/07. I am thinking the Freedom Mortgage loan officer we spoke with yesterday didn't have the full facts in front of him as this was our first contact, and may not know that his company's FHA loan with us was a refi.
Just wondering what others thought because we are talking thousands of dollars difference. Thanks for any insight
You go by the date you refinanced the loan in July 2009.
When you refinance the original loan is paid off, and you begin a new loan.