FHA Steamline Refinance Charts

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

News about the FHA Upfront Premium and Monthly Mortgage Insurance (MI) going up is not new, there have been several blogs written about this already.  However, what I have not seen is anyone provide a quick reference chart that can be printed and kept on hand.  So I have put together a chart to do just that, and hope that others find it as useful as it will be for me.

Starting next month any FHA Case Numbers that are ordered on or after April 9th will be subject to the UpFront Premium and MI shown in the chart below.

 

Starting in June all FHA Loans in Connecticut for a FHA Mortgage greater than $625,500 that the  FHA Case Numbers is ordered on or after June 11th will be subject to the UpFront Premium and MI shown in the chart below.

Note:  Terms greater than 15 years regardless of Loan To Value (LTV) will have annual (monthly) premiums for the greater of five years or until the amortized LTV reaches 78%.  Tor 15 year terms the annual (monthly) premium will be due until the LTV reaches 78%

 

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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

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Bob Caldwell 03/08/2012 12:20 AM
  2. Joe Jackson 03/08/2012 04:09 AM
  3. Gabe Sanders 03/11/2012 09:27 PM
Topic:
Mortgage / Finance
Location:
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fha steamline refinance

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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, having a premium for loans over $625,000 won't affect a lot of the buyers over in our area. It might be different with those high rollers in Middletown

Mar 07, 2012 10:35 AM #4
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Dagny Eason
Dagny's Real Estate - Wilton, CT
Fairfield County CT, CDPE Homes For Sale and Condo

George - Thanks for all of the great charts so we can present them to our clients in a clear fashion!

Mar 07, 2012 11:39 AM #5
Rainmaker
550,294
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi George,

Thanks for the info and now a question. If a borrower is going from a higher rate to a lower one with a streamline and has great FICO scores, is it necessary to quality "income" wise for the lower rate?

Mar 07, 2012 12:27 PM #6
Rainmaker
712,446
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Nice reference chart to keep on hand. Thank you George.

Mar 07, 2012 08:31 PM #7
Rainmaker
509,944
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
Vice President of Mortgage Lending, Marin County

Very helpful and a clear depiction of what's going to happen.  I understand the motivation behind the changes, but feel it is unfortunate that HUD continues to handicap the higher end of the market.  If the goal is to bring those home prices down, they should state that, otherwise, I don't think it's the fault of the owners/buyers of those properties that the price range is what it is.  Obviously, when your own community and surrounding area (Marin Co., CA) is entirely comprised of hi-cost areas, I suppose it's easier to be more sensitive to this....

Great post.

Mar 07, 2012 09:41 PM #8
Rainer
199,358
Pat Mistretta
PalmerHouse Properties & Associates - Atlanta, GA
Atlanta Lofts and City Living

What a great chart.  It's very thorough and easy to understand.  Thanks so much for taking the time to put it together and share with the group.

Mar 07, 2012 09:48 PM #9
Rainmaker
1,357,977
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

George, thanks for putting this together for us. Very useful information.

Mar 07, 2012 10:30 PM #10
Rainer
250,645
Shay Campbell
Universal American Mortgage Company - Raleigh, NC
Raleigh, NC

George, our source says any case numbers assigned on or after April 1, 2012 will have the new mortgage insurance premiums not April 9th.

Mar 07, 2012 10:54 PM #11
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Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

For a streamline refinance, what is your opinion on how much the interest rate has to save to be work a refi? For example, if someone is at 4.5% should they do a streamline refinance now?

In a streamline do they do fresh credit checks and appraisals, or are those waived?

 

Mar 07, 2012 11:13 PM #12
Rainmaker
621,948
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

I can definitely see this chart really helping people who have this type of loan.

Mar 07, 2012 11:32 PM #13
Rainer
194,497
Stephanie Stringer
First Choice Loan Services NMLS#210764 - San Antonio, TX
Mortgage Loan Originator

George-  Very well written and displayed for the non loan officers to understand.    I can tell you I am still amazed that there are loan officers out there that are selling to FHA clients that once they reach 20% equity then they can get rid of MI on a 30 year.  WRONG- Five years is a must and it's 78%.   Just recently I had another client being told my a mortgage company down the street the wrong information.  Of course I got the sheet directly from HUD to prove it.  It took sometime for the customer to finally realize I was right.  

Mar 08, 2012 12:15 AM #14
Rainmaker
597,884
Valerie Osterhoudt
Johnson Real Estate, Inc. - Cromwell, CT
ABR, Cromwell, CT Real Estate ~ 860.883.8889

George.. There are always changes to mortgages, one way or another.  I'm glad you posted this to keep us up-to date.. I will make reference to this as needed.

Mar 08, 2012 12:20 AM #15
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Bill glad that you found them important enough to do that.

Barbara so this was good timing :)

Jennifer thank you.

Ed, and here I thought that would be a small sale for you :)

Dagny glad I could help with that.

Lynda, no they do not.  You do not have to input income, but you do have to collect a paystub and W2's for the file fo SSN identification purposes.   FHA is already on the hook for the loan, so the debt-to-income ratios are not important at that point, and the lower payment will make it more likely that the loan will stay current.  They do need to verify employment, and even though paystubs and W2's are provided, they are not used in income calculations.

Olga your welcome

Rob I am not a fan of many of the things that FHA is doing right now either.

Pat you are welcome.

Michael glad that you find it useful

Shay that is not what we have, and that would be very different from all the other times that FHA has gone through one of these changes. 

Erica, there is not appraisal, and no I don't think that someone at a 4.5% rate would save anything because of the much higher MI payments.  The interest rate really needs to be in the 5+% range before it really starts to make any sense to do this in my opinion,

Morgan I hope it is.

Stephanie, I run into the same thing, and am also surprised by it especially that is one of the disclosures that they have to sign.  I guess some LO have not take the time to read what they are advising Borrowers on.

Valerie, you might want to give a copy of this to Glen as well.

Mar 08, 2012 01:25 AM #16
Rainer
246,653
Kevin A. Guttman-Author, Reverse Mortgage Advisor
NMLS#384936 - Colorado Springs, CO
877-251-9709

George, thanks for the charts.

Important info for sure.

Thank you!

Kevin

Mar 08, 2012 03:10 AM #17
Rainer
6,339
Erica Holstein-Marietta
Keller Williams Realty Signature Partners - Marietta, GA
Cobb County and Surrounding Areas

Thank you George.

It is important to stay on top of the constant changing

world of financing and real estate.

 

Erica Holstein

Mar 08, 2012 03:27 AM #18
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Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

Thanks George. 

Mar 08, 2012 07:59 AM #19
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Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Thanks George.  It's always good to have charts to fully explain what is going on with FHA loans!  

Mar 08, 2012 11:06 AM #20
Rainmaker
890,251
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

I did know this was happening.  I appreciate the charts - thank you!

Mar 08, 2012 12:22 PM #21
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Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Thanks, George. I knew I could count on you to educate us all. I hope you're well!

Mar 09, 2012 04:20 AM #22
Rainmaker
550,294
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi George,

Thank you for the detailed response, I'm very grateful!

Mar 09, 2012 02:58 PM #23
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