What is a funding fee refund?

You can multiply your interest rate by your mortgage amount to calculate the approximate VA funding fee amount. For example, let’s say you plan to purchase a home for $200,000 at 4% with 0% down. Your monthly payment would be about $955 for just principal and interest – not including taxes or insurance.

Applying for the Funding Fee Refund If, after applying for a refund, the VA approves your request, you will receive the refund in one of two ways, depending on how you initially paid the funding fee. If you paid the fee in cash at closing, you will receive a cash refund for the amount of the funding fee .

The FHA Funding Fee is the upfront cost and monthly premium you pay when you get a mortgage guaranteed by the Federal Housing Administration or FHA . The upfront fee, also called the upfront mortgage insurance premium (UFMIP), equals 2.25 percent of your mortgage amount.