FHA Net Tangible Benefit & Streamline Calculator


Effective April 18, 2011, the Federal Housing Administration (FHA), revised the underwriting requirements (rules) for the FHA streamline refinance program. The most notable change is the “net tangible benefit”. New FHA streamline loans originated after April 18, 2011 must demonstrate a 5 percent reduction to the principal and interest of the mortgage payment plus the annual mortgage insurance premium (MIP), or if refinancing from an Adjustable Rate Mortgage (ARM) to a fixed rate loan must either reduce the interest rate by at least 2% or be no greater than the current interest rate. Any suggestions for improvement to this calculator is appreciated! Contact AnytimeEstimate


           
  Please adjust the Up Front MIP (#5) and Annual MIP (#8) if necessary (below)  
   
  Existing fixed rate to new fixed rate  
  Existing fixed rate to new hybrid ARM (3/1 or 5/1 ARM)  
  Existing one-year ARM to new one-year ARM  
  Existing hybrid ARM that is currently in its initial fixed rate period to new fixed rate  
  Existing hybrid ARM that is currently in its initial fixed rate period to new hybrid ARM (3/1 or 5/1 ARM)  
  Existing hybrid ARM that is currently in its adjustable rate period to new one-year ARM (3/1 or 5/1 ARM)  
  Existing fixed rate to new one-year ARM  
     
1. Current Principal & Interest    
2. Current Monthly MIP    
3. Total (P&I + MIP)    
     
  Proposed Mortgage:  
4. Base Loan      
5. Up Front MIP (see below)      
6. New Interest Rate      
7. P&I      
8. Annual MIP (see below)    
9. Total (P&I + MIP)      
10. % Difference in Monthly Payment ( => 5% )  
     
  From A 1-Year Arm To Fixed Rate  
  From A Hybrid Arm (During Adjustable Period) To Fixed Rate  
     
11. Interest Rate on Current ARM Loan      
12. Interest Rate on Proposed Fixed Rate Loan      
13. Difference in Interest Rates ( <= 2% )    
  The interest rate on the new mortgage must be no greater than 2% above the current rate of the 1-year ARM.  
     
  From A Hybrid Arm(During Adjustable Period) To Hybrid  
  From A Fixed Rate To A 1-Year Arm  
  From A Hybrid Arm(During Fixed Period) To 1-Year Arm  
  From A 1-Year Arm To Hybrid Arm  
     
14. Interest Rate on Current Loan      
15. Interest Rate on Proposed Loan      
16. Difference in Interest Rates ( => 2% )    
  The interest rate on the new mortgage must be at least 2% below the interest rate of the current mortgage.  
     
  FHA Streamline Refinance which replaces a loan from on, or after, June 1, 2009 is as follows :  
  Up Front MIP      
  FHA upfront mortgage insurance premium is 1.75 percent    
  Annual MIP:      
  15-year loan terms with loan-to-value over 90% = 0.70 percent annual MIP  
  15-year loan terms with loan-to-value under 90% = 0.45 percent annual MIP  
  30-year loan terms with loan-to-value over 95% = 1.35 percent annual MIP  
  30-year loan terms with loan-to-value under 95% = 1.30 percent annual MIP  
 
  FHA Streamline Refinance that replaces a loan endorsed prior to June 1, 2009  
  Up Front MIP      
  FHA Streamline Refinance that replaces a loan endorsed prior to June 1, 2009, the new FHA mortgage's upfront mortgage insurance is equal to 0.01 percent  
  Annual MIP:      
  15-year loan terms with loan-to-value over 90% = 0.55 percent annual MIP  
  15-year loan terms with loan-to-value under 90% = 0.55 percent annual MIP  
  30-year loan terms with loan-to-value over 95% = 0.55 percent annual MIP  
  30-year loan terms with loan-to-value under 95% = 0.55 percent annual MIP  
  15-year fixed rate mortgages with LTVs of 78% or less pay no annual MIP.  
  FHA Streamline Refinance which replaces a FHA loan endorsed prior to June 1, 2009 and for which the mortgage is a jumbo FHA mortgage (i.e. loan size exceeds $625,500), no additional mortgage insurance premiums are due.