On June 11, 2012, the Federal Housing Administration will provide relief to certain homeowners with existing FHA mortgages that want to refinance using the FHA’s Streamline Refinance program. This relief will come in the form of reduced upfront mortgage insurance payments and reduced monthly insurance premiums.
The new FHA Streamline Refinance annual premium, which is paid monthly by the borrower, will now be .55% on a streamline refinance of any loan endorsed on or before May 31, 2009. This is a much lower premium rate than the current FHA Streamline rate of 1.2% – 1.25%. The upfront mortgage insurance premium (UFMIP) is a one-time fee collected by FHA and added to the loan balance. FHA recently announced an increase of UFMIP to 1.75% starting April 1st, but as of June 11th this new FHA Streamline Refinance UFMIP rate is only .01% when the previous loan was endorsed on or before May 31, 2009. All other streamline refinances will still be subject to the UFMIP rate of 1.75%.
FHA Streamline Refinances are the fastest, simplest way for homeowners with FHA mortgages to refinance. Another defining characteristic of the FHA Streamline Refinance program is that a home appraisal is optional. Instead of a new home appraisal, the FHA will allow you to use the original loan’s appraised value as your home’s current value, regardless of what your home is worth today. This may be quite helpful to homeowners who suffered reductions in home values since 2007.
A licensed mortgage loan officer can help you determine if you meet the requirements to be eligible for the reduced premiums available and if a FHA Streamline Refinance is right for you. Click here to find a mortgage loan professional near you.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.