Good news FHA loan holders – a little extra cash might be coming your way as the government has just changed FHA fee streamline refinance structure to get you spending more in the economy … and less on your mortgage.
Effective this June, the mortgage insurance on an FHA will be dropping, and many FHA loan holders will be able to refinance at crazy low rates. Which means if you pay PMI insurance, you’ll see even reduced fees! And who doesn’t like that?
If you’re looking for the “basics” on how this will work, here’s my boiled-down version:
- Starting mid-June 2012, the FHA is lowering the mortgage insurance premium from .096 percent to .046 percent. Which means your monthly PMI payments can go down if you refinance under this program.
- If you are up-to-date on your current FHA mortgage, you may apply for an FHA refinance.
- The up-front mortgage insurance premium will also be lowered to only .01, meaning that many people can now apply to refinance an FHA loan without having to come up with a few thousand before signing (or rolling that into the home loan.) Now, it will only cost you maybe $10-20 up-front, depending on the purchase price.
- This will save you thousands of dollars.
- This applies to loans where you want to “streamline” the refinance – meaning you have an existing FHA loan. (those who qualify must have an existing loan originated on or before May 29, 2009.)
Oh… and to Qualify for an FHA Streamline Refinance:
- You need to ALREADY HAVE an FHA loan.
- You DO NOT need to verify employment.
- You DO NOT need to verify income.
- You DO NOT need a credit score pulled.
- You DO NOT need an appraisal.
Contact us to see if you qualify for the new FHA June 2012 Refinance program in Missouri!
For more Information about the FHA Streamline Refinance Changes in June 2012:
Washington Post: Mortgage cutoff date a deterrent to refinance
North Carolina Realtors: FHA Streamline Refinance (great info, disregard the state-specific stuff)
The Mortgage Reports: FHA Streamline Refinance: Complete Mortgage Guidelines