Over the past several months we have seen the FHA offering many opportunities for refinancing to take advantage of the record low interest rates. People who already have an FHA mortgage should take note of recent developments to find out if they qualify to refinance under new Mortgage Insurance Premium programs.
Beginning on June 11th, 2012, FHA will be offering streamline refinances with an Upfront Mortgage Insurance Premium (UFMIP) of just 0.01%; for example if doing an FHA Streamline refinance on a $400,000 FHA loan, you would only pay $40 for the UFMIP. This is a HUGE savings and will enable many homeowners to take advantage of the record low rates that are currently available without having to increase their loan amount with the usual 1.75% UFMIP charge.
With rates well below 4%, it may still be worth looking into refinancing even if you don’t meet the criteria for the discounted UFMIP and Monthly MI rates. Lender credits are available in many instances to make this refinance process cost little to nothing out of pocket for the homeowner. There are also refinancing options that can be done without needing an appraisal.
For more information contact a lending expert in your area.
Thanks to Todd Pede at First Home Mortgage for providing expertise and details for this post.