BELOW IS THE DATA SHEET RIGHT FROM THE WHITE HOUSE:
KEY POINT: APPLIES TO REFINANCES OF LOANS ORIGINATED BEFORE 6/1/2009.
KEY FHA NUMBERS TO REMEMBER: (assuming 96.5% loan)
Upfront MI: Was: 1.0% Will be 1.75%, but STREAMLINED ONLY 0.1% !!!
Annual MI: Was: 1.15% Will be 1.25%, but STEAMLINED ONLY 0.55% !!!
Now from the White House:
Reducing Fees for FHA Borrowers Seeking to Refinance – Saving Homeowners Hundreds of Dollars A Year
The FHA offers a streamlined refinancing program to allow borrowers with FHA-backed mortgages to refinance their loans at lower cost and with fewer burdens. This program has helped hundreds of thousands of families refinance, but lender reticence and fees have kept many families from participating. Today, the President is announcing new steps to increase the reach and effectiveness of the program, reducing the fees that participants will pay on these loans.
• Cutting its Fees Substantially: The FHA currently charges an up-front mortgage insurance premium of 1% of the borrower’s loan balance and an additional 1.15% of the balance per year. FHA is reducing the up-front premium to .01% for streamlined refinancings of loans originated prior to June 1, 2009 and cutting the annual fee for these refinancings in half, to .55%. Together these reductions could save the typical FHA borrower about a thousand dollars a year.
• An Estimated 2-3 Million FHA Borrowers Will Be Eligible to Benefit: We estimate that approximately 2-3 million FHA borrowers are eligible to benefit from the program with these changes. While it is always difficult to estimate participation in these programs, this will result in significant monthly savings for hundreds of thousands of families.
Reduction in Fees Could Save the Typical Borrower About a Thousand Dollars a Year – On Top of Savings from Refinancing
• Consider a typical FHA borrower with $175,000 outstanding on the
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