As of today anyone with a FHA Mortgage that has an FHA Case Number that received Endorsement on or before May 31, 2009, can refinance their FHA Mortgage under the new guidelines.  Today the FHA Monthly Insurance (MI) reverted back from a 1.25 multiplier to a .55 multiplier, and the UpFront Premium from a 1.75% to .01%

Even with the interest rates as low as they have been refinancing has not been possible for many Homeowners for a couple of reasons:

• Home values have dropped to a point that many properties do not have enough equity to be able to refinance. In many cases the value of the property is not only below what the homeowner paid for the property, but even below the remaining loan balance on the home.
• The FHA Monthly Insurance (MI) increase from a .55 multiplier to a 1.25 multiplier, and the UpFront Premium from 1.000% to 1.750% greatly reduced the monthly mortgage payment savings to a point that it did not make since for a Homeowner to refinance.

With the changes that went into effect today, Homeowners with a FHA Mortgage that has a FHA Case Number that received Endorsement on or before May 31, 2009, can now receive the full benefit of today's lower interest rates.  For example:

• The difference between a monthly payment on a $100,000 mortgage at a .55 MI multiplier, and a 1.25 MI multiplier is $58.34 per month.
  
• The difference between a monthly payment on a $100,000 mortgage at a 1.75% UpFront Fee and a .01% UpFront Fee is $8.06 per month.
  

That is a total of $66.40 per $100,000 mortgage.  When that is added to the savings in the interest it can represent substantial savings.  Further the homeowner does not have to be concerned with the value of the property because NO APPRAISAL is required 

This will be a huge opportunity for many Homeowners with FHA Mortgage to finally take advantage of the lower interest rates.  Hopefully this news will get out to these Homeowners who are eligible to take advantage of the change in FHA Streamline Guidelines today for Homeowner with a FHA Mortgage that has an FHA Case Number that received Endorsement on or before May 31, 2009.  Below is the chart reflecting this change.

 

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   Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com