FHA Streamline Refinance

January 2015 Market Update – FHA to lower cost of mortgage insurance

In January 2015, the FHA streamline has become an even better value. FHA recently lowered its mortgage insurance premiums by 0.50%. Most borrowers can now drop their interest rate and their monthly mortgage insurance with one refinance transaction.

For example, a borrower who took out a $200,000 loan before this change paid an annual premium of $225 per month. This was a 145 percent increase from premiums of 2010. Once the lower fees are in place after January 2015, the monthly payment would drop by $83.

Here are a few of the biggest benefits to the FHA streamline program

  • No appraisal is required
  • Underwater homes are eligible
  • Very low rates
  • No income documentation is required (pay stubs, W2s, etc.)
  • You may be entitled to refund of part of your original upfront mortgage insurance FHA loans closed before June 1, 2009 may qualify for reduced mortgage insurance premiums of .01% upfront and .55% monthly
  • Faster closing times than traditional refinances

 

Requirements of a Streamline Refinance

  • The mortgage to be refinanced must already be an FHA insured loan.
  • The mortgage to be refinanced must be current, with no more than one 30-day late in the past 12 months.
  • The refinance must result in a lowering of the borrower’s monthly principal and interest payments or, under certain circumstances, the conversion of an adjustable rate mortgage (ARM) to a fixed-rate mortgage.
  • No cash may be taken out on mortgages refinanced using the streamline refinance process.

 

Call Jody at (702) 769-1791 to find out more about this great program. Or submit your FHA Streamline Refinance inquiry and we’ll call you back.