If you currently have an FHA loan, please read the following.
On September 18th 2009, HUD issued new guidelines for FHA streamline refinances. While I agree with the spirit of the new guidelines, the result will be that FHA streamline refinances without appraisals will be more costly. The new guideline will apply to all transaction with an FHA case number issued on or after 11/18/2009.
Why will the new guidelines make an FHA streamline more expensive?
Under the new FHA streamline guidelines, the maximum loan amount will be your outstanding principal balance MINUS your upfront mortgage insurance premium refund. Under the old guidelines, your maximum loan amount was typically equal to your old loan amount. This is a huge change.
Example: You owe $300,000 and you have a $3,000 UFMIP refund- your maximum loan amount will be $297,000. Clearly, this is not even enough to payoff your existing first mortgage. The result will be that you will either have to take a HIGHER interest rate to allow your mortgage broker to pay closing cost, or you will need to come out of pocket with a significant amount of cash.
So what do you do?
Streamline your FHA loan NOW! Rates are currently at all time lows. 4.5% fixed rates are available today with about 1 point upfront. ARM's are as low as 3.5%!
While I am not happy about the loan amount restrictions, it could not have come at a better time. You still have time to streamline your loan with the lowest interest rates that we have ever seen. Do not wait any longer! Rates are low, guidelines are changing, call me NOW!
Work with a LOCAL mortgage lender that you can trust. Choice Finance has been serving the DC Metro area since 1996
Apply online now! @ www.choicefinance.net/apply
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