FHA Streamline Refinance

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The FHA has recently opened up a new program that has made it easier for millions of Homeowners to refinance their mortgages at lower interest rates, even if they owe more than their homes are worth.

The eligible borrowers for this streamline refinance program, must have closed on their FHA loans before June 1, 2009.

The changes to the government's streamlined refinancing program could help the typical FHA borrower find "Significant Monthly Savings", according to the administration.

FHA Streamline Refinance MIP  changes are as follows:(highlighted)

April 9, 2012 – All FHA Loans

·        The Annual MIP on all FHA loans will increase by 0.10% to 1.20% or 1.25% based on LTV.  That’s about $15 per month on the typical FHA loan.

·        The Up Front MIP (UFMIP) will increase from 1.00% to 1.75%.  That’s about $1,387 more on the typical $185,000 FHA loan.  It can still be rolled into the loan amount.

·        FHA 15Y Loans with an LTV < 78% will still be exempt from the Annual MIP

June 11, 2012 – Loans over $625,500

·        The Annual MIP on FHA loans over $625,500 will increase an additional .25% (total of 0.35% higher than today)

June 11, 2012- FHA STREAMLINES

·        If the FHA loan you’re paying off was INSURED by FHA prior to June 1, 2009:

§  UFMIP is 0.01%  ßDarn near FREE!

§  Annual MIP is 0.55%

·        If the FHA loan you’re paying off was INSURED by FHA June 1, 2009 or after:

§  UFMIP will be 1.75%

§  Loans up to $625,500: Annual MIP will be either 1.20% or 1.25% based on LTV

§  Loans over $625,500: Annual MIP will be either 1.45% or 1.50% based on LTV

All of these changes are effective based on when the FHA Case Number is assigned to the loan.

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