Beginning June 11, 2012, FHA will lower both mortgage insurance premiums (UFMIP & Annual MIP) to encourage homeowners to refinance their current FHA loans and take advantage of these historically low-interest rates.
The specific changes made to the mortgage insurance premiums are as follows:
- UFMIP (Up-Front Mortgage Insurance Premium) reduced to .01% (currently 1.75%)
- Annual MIP reduced to .55% (currently 1.25%).
- This program (like the HARP 2.0) is geared to assist those homeowners who are financially responsible and simply want to lower their monthly mortgage payments. And by significantly reducing the cost of mortgage insurance, this program is anticipated to assist millions of homeowners across the country.
Are you FHA Streamline Refinance Eligible? Here’s what you need to know:
- No Mortgage Lates in the past 12 months
- Employment & Income are not verified
- Credit Scores are not verified
- Appraisals not required
- Loan balances may not increase to cover loan costs
If you are currently in an FHA loan and haven’t refinanced since May 31, 2009 – this is the perfect opportunity for you to participate in the FHA Streamline Refinance Program and lower your monthly mortgage payment (for good).
