FHA is in some financial trouble and as a result they made some changes to their rules lately. They now require that new FHA borrowers, as of April 1 2013, continue to pay mortgage insurance premiums for the life of the loan. An old FHA rule, dating from 2001, had allowed borrowers to cancel their mortgage insurance when their outstanding balance reached 78% of the original principal balance.
However, as of April 1, 2013 you will pay the FHA mortgage insurance for the life of the loan. However, if you had an FHA-insured mortgage prior to the April 1st 2013 date that you paid off, refinanced out of, or got rid of by selling the house, you may be eligible for a refund from FHA. As time goes by, the amount you are due for a refund drops…drastically. That is because the mortgage insurance cost is front-loaded in the early years. It may be worth reaching out to FHA, and checking to see if you are owed some money.
Call the Mortgage Insurance Premium Refund Support Service Center at (800) 697-6967 or email them at sf_premiums@hud.gov. If you call, plan on sitting on hold for a while. So order a pizza, get some reading material, make the call…and wait.
When you call you’ll need your property address, your name and preferably your FHA case number, which will likely be on some of the original loan paperwork.
You do not need to pay another person or firm to assist you in collecting your refund. Don’t pay a third party a fee, that is a waste of money. For more on this click here to go to FHA’s website.
Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.
