New price-cut FHA Streamline program can save current FHA borrowers money on mortgage insurance while reducing monthly payments.
Military members who are not eligible for VA home loan benefits will often use FHA loans similar to VA loans for their low-money-down and government-backed features. Current FHA borrowers may be entitled to newly reduced FHA Streamline refinancing which can help cut the costs to refinance while taking advantage of today’s low interest rates.
Price-cut FHA Streamlines help borrowers take advantage of today’s low interest rates
Historically low rates have made mortgage refinancing trendy, but some FHA borrowers have hesitated because they don’t want to pay increased mortgage insurance costs. Starting June 11, 2012, mortgage insurance discounts will be offered to certain borrowers through the FHA Streamline refinancing program
. The price-cut FHA Streamline program features reduced-rate mortgage insurance including:
- .01% for upfront mortgage insurance premium (UFMIP), and
- .55% for annual mortgage insurance premium (MIP)
Reduced rates through FHA Streamline can save thousands of dollars upfront compared to regular FHA refinance. To qualify, borrowers must:
- Have an FHA loan endorsed on or before May 31, 2009
- Be current on their mortgage payments
- Meet other FHA and lender qualifying guidelines for Streamlines
Price-cut FHA Streamline helps borrowers avoid higher costs for mortgage insurance
FHA borrowers who can’t qualify for the price-cut Streamline program will have to pay the going rate for upfront and annual mortgage insurance. UFMIP has recently jumped from 1% to 1.75%. And, annual MIP on a 30-year loan can be between 1.2% and 1.5% depending on the situation. Borrowers who qualify for price-cut FHA Streamline can avoid these increases.
FHA Streamlines are the quickest and easiest way to refinance
Streamlines require significantly less paperwork and have relatively easy income and credit qualifying. Most Streamlines close within two weeks. With price-cut FHA Streamlines, borrowers can enjoy immediate monthly savings on interest as a result of their refinance. Many who use this program will save a small fortune on interest over the lives of their loans.
Look for FHA lenders that offer cost-free Streamlines with no origination, no appraisal and no closing costs.
To get started on your price-cut FHA Streamline, contact an FHA-approved lender
Note: Terms subject to continuing program availability. Does not apply to Title I, Home Equity Conversion Mortgages (HECM), Section 247 (Hawaiian Homelands), Section 248 (Indian Reservations) and Section 223(e) (Declining Neighborhoods). FHA case number must be initiated on or after June 11, 2012. Some state law restrictions may apply.