Having successfully refinanced out of my FHA loan taken so we could do construction, consider this a PSA on some things I didnt know but wish I had.... 1. FHA MI is only tax deductible if you make below a certain threshold which is pretty low. 2. To eliminate an FHA loan MI you must pay it for 5 years and get to 78% loan to value based off of the appraisal at the time of closing. So market appreciation means nothing. 3. If you do refi out of it, you can no longer get a refund on the upfront MIP you paid at closing, which is whopping 1.5% of the purchase price. 4. And the biggest screw you is that when you close, the mortgage company makes you pay full months interest regardless of when you close. So I gave HUD an extra 22 days of interest as a final thank you for the right to screw me for the last year.
Posted on: Fri, 15 Nov 2013 02:39:04 +0000
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