When
MIP payments are received late, the Current Value of Funds Rate
(CVFR) is used to calculate interest due. Interest charged is simple
interest at the rate in effect at the time the debt becomes overdue.
The rate of interest remains fixed for the duration of the indebtedness
(I TFM 6-8025.40).
The
CVFR, effective January 1 of each year, is based on the Treasury
Tax and Loan (TT&L) rate for the 12-month period ending the
previous September 30, rounded to the nearest whole percent. The
rate is published annually in the Federal Register by October 31.
The rate is calculated quarterly on a 12-month rolling average of
the TT&L rate and is subject to revision only if the published
rate changes by 2 percentage points at the close of the prior calendar
quarter.
Current
and historical CVFR can be obtained from Treasury's
Financial Management Service website.
To
request additional information regarding Single Family Mortgage
Insurance Premiums, please send us an email.
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