Victorville, CA -- (SBWIRE) -- 06/12/2012 -- FHA wants more homeowner’s to be able to refinance to a lower FHA Mortgage Payment. FHA has lowered the Mortgage Insurance for refinancing your FHA loan and that could save you hundreds even thousands!
June 11, 2012 is the date FHA Up Front Mortgage Insurance Premiums (UFMIP) will be lowered for some borrowers applying for FHA Streamline Refinance Loans. FHA Mortgagee Letter 12-4 explains the changes. For some, FHA will lower its Upfront Mortgage Insurance Premium for certain current FHA loan clients to just .01 percent.
IF YOU CURRENTLY HAVE AN FHA LOAN – THIS IS HUGE!
Many current FHA loan clients have not been able to take advantage of record low rates because of the because of the previous high cost of FHA Mortgage Insurance. The higher MIP offset the benefit of the lower rate. The slash to only 0.1% – combined with historically low rates means many more people will save THOUSANDS of dollars using the 2012 FHA Streamline Refinance Program!
When the new fees take effect, a borrower refinancing $200,000 will about pay $20 -- instead of $3,500 -- in upfront mortgage insurance. The borrower also will pay about $92 -- instead of $208. Many times the borrower can work with the lender to avoid any upfront costs as well.
This means that a borrower brings no money out of pocket and lowers their payments significantly. No wonder the industry is buzzing about this change
If you want to know if you might qualify for this new program remember these few rules:
- Existing FHA Loan must be current and not been late in last 12 months
- Your current FHA mortgage must have been endorsed prior to May 31, 2009.
- Employment verification is not required with an FHA Streamline Refinance
- Income verification is not required with an FHA Streamline Refinance
- Lower Credit score may not disqualify you for an FHA Streamline Refinance
- A new appraisal is not required with an FHA Streamline Refinance
Andrew Andreasen offers this tip when considering refinancing:
- You should get a significantly lower rate for refinancing to make sense. Don't rush to refinance unless it's truly worth your while.
- Don't be afraid to ask questions about the terms.
- Be prepared when you call by having a copy of your mortgage coupon with you.
- Before you call ask yourself "How long do I plan to keep this home?".
Victorville, California - based mortgage expert Andrew Andreasen specializes in providing mortgage information to California residents that allows them to make informed decisions about their mortgage financing options and learn the insider secrets that can save them thousands of dollars over the life of their loan.
Andrew Andreasen is available for interviews and will welcome all your mortgage related questions.
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