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It seems the Federal Housing Administration (FHA) is making its mortgage program (FHA Streamline Refinance) even more affordable. Allowing for hundreds of thousands of additional homeowners to reap the awesome benefits of today’s low mortgage rates. Their goal is to reduce the mortgage fees and mortgage insurances to all homeowner’s that qualifies. These lower fees will be implemented fairly soon as the set date is for June 11, 2012. So just a couple weeks from now! This means that borrowers who refinanced their loans, which were endorsed by the FHA before June 2009, can take action now!
One mortgage insider, made the following statement in regards to the new change. “If you had your loan endorsed prior to that [June 2009], this is you’re your chance to save money with a streamline [refinance]…” This insider couldn’t be closer to the truth either.
The FHA Streamline program only asks for a very limited amount of documentation from the borrower and also does not require a formal appraisal of the home. The great thing about the no-appraisal rule is that homeowners are allowed to refinance, even if they’re in an “underwater” situation. Meaning they’re owe more on their mortgage than the home is worth.
Take the following as a brief example in regards to the type(s) of savings that will become possible for homeowners. This example is based on a $200,000 FHA mortgage (30-year fixed rate loan with an LTV greater than 95%)
Before June 11 | After June 11 | |
Upfront Premium Paid at Closing | $3,500.00 | $20.00 |
Annual Premium Monthly Cost | $208.33 | $91.67 |
Upfront Premium Percentage | 1.75% | 0.01% |
Annual Premium Percentage | 1.25% | 0.55% |
These huge changes to the FHA Streamline Refinance program make it the perfect time to refinance your mortgage and start saving yourself a pretty penny. We would love the opportunity to help guide you through this awesome loan. If you have property located in Michigan, then be sure to contact one of our licensed loan-officers at 1-800-555-2098 or feel free to fill out the form below.