FHA STREAMLINE REFINANCE, A NO BRAINER
This old blog is a very good reminder that many families could save a lot of money by simply refinancing their current mortgage.
Please visit the original blog if you wish to leave comments.
“FHA Streamline Refinance, a No Brainer”
Actually, the word streamline, when it comes to FHA, has 3 different meanings.
We are constantly doing the FHA 203 K streamline product, which allow up to $35,000 in renovations to be done as part of a purchase or refinance. Wonderful option when renovations are needed, most of the time we use the product when someone is purchasing a home, that needs work. So many have been able to take advantage of outstanding buys.
There are two additional streamline refinance products. The first is for mortgages done prior to June 2009 and a different one for loans closed after that date. Most require no appraisal, the mortgage insurance premiums are different and so is the monthly mortgage insurance.
I did two streamline refinances yesterday, that were both originally done prior to 2009. One had a monthly savings of $305 and the other $361. That is some serious savings, which help each family and our economy.
On Fire: FHA Streamline Refi Applications
By: Brian Collins
Streamline refinancing applications have more than doubled since the Federal Housing Administration opened a special program on June 11 for existing FHA borrowers who had not refinanced since May 2009.
“We saw more than 80,000 applications in just the first month,” Housing and Urban Development secretary Shaun Donovan said during a visit to Ohio this week.
HUD previously reported that FHA received 51,000 streamline applications during the first 10 days of the new program.
In the months preceding the launch of the special streamline program, FHA was receiving 33,000 to 47,000 applications. In May, streamline refinance applications fell to 17,000 in anticipation of the June 11 launch date.
Announced by President Obama in early February, the special program is designed to give existing FHA borrowers who are still current (on loans originated at least three years ago) a chance to refinance at today’s historically low interest rates.
FHA is only charging an upfront fee of 1 basis point and a 50 bp annual premium under the special refi program. The standard FHA rate is 175 bps for the upfront fee and 125 bps for the annual premium.
image: vichie81/freedigitalphotos.net
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
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