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FHA Net Tangible Benefit & Streamline Calculator

Pass-fail graphicEffective 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. Please send me an E-mail if you see an error or want to make a comment.

| Net Tangible Calculator | UFMIP and MIP |
Loan Number
Case Number
Borrower Name
 
PASS or FAIL    
 
CURRENT AMORITIZATON TYPE  
PROPOSED AMORITIZATON TYPE
 
  CURRENT   PROPOSED
Amortization Term (Years)    
 
  CURRENT   PROPOSED
Enter 1st mortgage P & I payment    
Enter monthly mortgage insurance payment
 
T O T A L    
Difference  
 
  CURRENT   PROPOSED
Interest Rate  
MIP Rate (ie - .85)
Combined Rate
Combined Rate Difference:  
 
BENEFIT TESTS   RESULTS   CRITERIA
Any ARM with <15 Mos to Pmt Change to fixed-rate New Combined Rate no more than 2% above the prior Combined Rate.
Any ARM with >=15 Mos to Pmt Change to fixed-rate
fixed-rate to fixed-rate     New Combined Rate at least .5% below the prior Combined Rate.
fixed-rate to 1 Yr ARM     New Combined Rate at least 2% below the prior Combined Rate.
Any ARM with >=15 Mos to Pmt Change to 1 Yr ARM
fixed-rate to Hybrid (Fixed) ARM
Any ARM with <15 Mos to Pmt Change to 1 Yr ARM     New Combined Rate at least 1% below the prior Combined Rate.
Any ARM with <15 Mos to Pmt Change to Hybrid (Fixed) ARM
Any ARM with >=15 Mos to Pmt Change to Hybrid (Fixed) ARM
Reduction in Term     The mortgage term is reduced;
The new interest rate does not exceed the current interest rate;

AND

The combined principal, interest, and MIP payment of the new Mortgage do not exceed the combined principal, interest, and MIP of the refinanced Mortgage by more than $50