icon Basis of HPA Refund Calculation

The basis of the HPA refund for borrower-paid, single-premium plans includes the following elements:

Here's an example of how the unearned premium could be refunded for single-premium mortgage insurance:

Refund Estimate Example

*This example is based on the borrower making advanced principal payments to accelerate the mortgage payoff sooner than the original amortization plan.

Note: this chart is a general example; exact refund amounts will vary according to each loan's unique characteristics. This is not a refund schedule. For more information about cancellation or termination requirements, please refer to the Homeowners Protection Act of 1998.