Estimating cash from an FHA cash-out refinance, line by line
Line 3: the premium on top
How the math works
FHA's cap applies to the base loan. The upfront mortgage insurance premium is a percentage of that base loan and is usually financed on top of it, so your total balance ends up a little above the cap. Your Loan Estimate shows the premium rate; enter it in the calculator to see the total loan.
Last reviewed against the primary sources listed below.
Two balances
| Amount | What it is |
|---|---|
| Base loan | Up to the cap on value |
| Upfront premium | A percentage of the base loan |
| Total loan | Base loan plus the premium |
Calculator questions
Does the upfront premium reduce my cash?
Not when it is financed on top of the base loan, but it raises the balance you repay.