Do you currently have an FHA mortgage? And has it not made sense to refinance because of the High Mortgage Insurance Premiums? Well, FHA just announced that it is going to reduce the Mortgage Insurance fees for current FHA mortgage holders. But before you get excited, there are some rules to follow.
You must have taken the mortgage out prior to May 31st 2009 and of course be current on all payments. The Up Front Mortgage Insurance Premium will be greatly reduced and the monthly mortgage insurance is only 55 cents per thousand borrowed. This is huge news…for the last several months; homeowners have not been able to refinance their current homes due to insurance being so high!
THE BENEFITS:
Refinance at today’s historical low rates
Refinance with NO closing costs
NO APPRAISAL REQUIRED (the term can be the lesser of 30 years or remaining term plus 12 years)
NO income verification required (we simply verify you are currently employed but not the income amount)
Restrictions include the following: You cannot have missed a mortgage payment for at least the last 12 months. You have to be currently employed (income is not a factor). You must still reside in the home as your primary residence. Other restrictions may apply.
Last month, the Obama Administration announced a broad package of actions and legislative proposals to help responsible homeowners save thousands of dollars through refinancing. This includes the changes announced today that will benefit current FHA borrowers – particularly those whose loan value may exceed the current value of their home. By lowering monthly mortgage costs for homeowners, FHA hopes to help more borrowers stay in their homes, thereby decreasing the potential for future defaults and reducing losses to the Mutual Mortgage Insurance (MMI) Fund.
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.
June 11th is just around the corner. Contact me today to refinance into a lower interest rate.
Bill Nickerson Bill@billnickerson.com 978-399-1313
The Mortgage Markets 