FHA Streamline Refinance Calculations 2012

fha refinanceIf you are considering a FHA Streamline refinance – you might want to know why the new FHA PMI rates for this program are so cool! 

Well, FHA is DROPPING it’s premium for refinancing, which – along with the other streamlined guidelines (like no appraisal required and no income verification required for some borrowers) makes it a pretty great deal!  We haven’t had a program this easy to do in 6 or 7 years!

In the example below – we are saving our customer $300 a MONTH!

Effective June 11, 2012 – The way you will calculate the NEW FHA Streamline Refinance upfront PMI is this:

Take the current loan balance

multiply that by 0.01%

Add that amount to your loan balance

Calculate your monthly payments on this new amount

Get a Rate Quote Now For a FHA Mortgage Streamline Refinance

Real Life EXAMPLE Let’s say you took a mortgage out in May of 2008 for $175,000.  Your FHA Upfront Mortgage Insurance was 1.75% of your loan, so the TOTAL loan amount was $178,062.  The note rates at that time were around 6.25%.  If you made all of the payments, the loan balance would be around $169,091 (on July1, 2012) and your monthly principal and interest payment would be $1096.00.


We would take the current loan balance (rounded) of $169,000

multiply by 0.01% for the PMI which equals: $16.90

add that to the loan balance of $169,000 = $169,017

At 4.0% (4.298 APR) the new monthly principal and interest payments would be $806.91

That’s A Drop in Mortgage Payments of $300 A Month!

Remember, to Qualify, Your loan must have been “Endorsed” By FHA prior to May 31, 2009 – find out what that means.

Call Steve and Eleanor Thorne 919 649 5058 to learn more about the Streamline FHA Mortgage Program in North Carolina.  The New Premiums for this program go into effect in June, but we can let you know TODAY if you qualify!  Be sure you are getting today’s best mortgage rates!  Call Steve Thorne 919 649 5058

FHA PMI Rate 2013 Chart


  1. Michael Ryder says

    Eleanor, what would the Monthly PMI rate be for an FHA Streamline loan if the amount I want to Finance is 139,000 and the value of the home is 145,500. I only have about 4.5% down, so I would need to pay PMI, but I was wondering what the monthly PMI rate would be as of today, 9/13/2012?



  2. Eleanor says

    You will have (as I think you know) both upfront and monthly FHA PMI – If you have a loan that you took out after May of 2009, then the monthly Streamline PMI rate is 1.25% – so you take the Total loan amount (loan plus upfront charge) multiply that by 1.25% and divide by 12. In the case you just gave me that means a base loan of $141,432 with monthly FHA PMI of $147.25. This is why so many people are not seeing a benefit to doing a streamline… but remember – if you got a loan in September of 2009 (for instance) your FHA PMI will come off after 60 payments – so in 24 months it will give you a reduction in payments! :)

  3. Robert says

    I was contacted by a lender that claimed they paid all costs for the streamlined refinance, and that the only thing I needed to pay was some nominal fee…$50 or so if I recall. I always thought that there were real costs associated with refinancing, but if this is true, doing a refi to 15 years would seem to be a no brainer. My current rate is 5.75%, and we intend on selling/moving in 2 years or so.

I try and answer all questions :)