Under FHA rules, UFMIP is typically what?

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Multiple Choice

Under FHA rules, UFMIP is typically what?

UFMIP is the upfront mortgage insurance premium charged on FHA loans. It’s generally nonrefundable, meaning you don’t get a cash refund if you pay off the loan or refinance into a different loan. The important exception is if you later obtain another FHA loan within three years of the original, in which case the UFMIP you’ve already paid can be applied to the new loan rather than being lost. So, in practice it’s nonrefundable, except when it can be applied to a new FHA loan within three years.

UFMIP is the upfront mortgage insurance premium charged on FHA loans. It’s generally nonrefundable, meaning you don’t get a cash refund if you pay off the loan or refinance into a different loan. The important exception is if you later obtain another FHA loan within three years of the original, in which case the UFMIP you’ve already paid can be applied to the new loan rather than being lost. So, in practice it’s nonrefundable, except when it can be applied to a new FHA loan within three years.

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