The FHA is reducing fees on its Streamline Refinance Program to assist qualified homeowners with refinancing their existing FHA mortgage. Beginning June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to .01 percent and reduce its annual premium to .55 percent for certain FHA borrowers.
To qualify, borrowers must be current on their existing FHA-insured mortgages, which were endorsed on or before May 31, 2009.
Currently, 3.4 million households with loans endorsed on or before May 31, 2009, pay more than a five percent annual interest rate on their FHA-insured mortgages. By refinancing through this streamlined process, it’s estimated that the average qualified FHA-insured borrower will save approximately $3,000 a year or $250 per month. FHA’s new discounted prices assume no greater risk to its Mutual Mortgage Insurance (MMI) Fund and will allow many of these borrowers to refinance into a lower cost FHA-insured mortgage without requiring additional underwriting. FHA-insured homeowners should contact their existing lender to determine their eligibility.
No comments:
Post a Comment