FHA Streamline Refinance in Arizona and California June 2012
For an FHA Homeowner who currently has an existing FHA loan that was endorsed/ closed prior to June 1, 2009, the MIP (mortgage insurance premium) are likely ”grandfathered” into a special guidelines designed by the FHA earlier this year. Arizona and California FHA Homeowners, may qualify for a reduced rate on the MIP and the annual mortgage insurance premiums aside from a significantly lower rate and payment.
Beginning for FHA Case Numbers assigned on or after June 11, 2012, and for loans endorsed prior to June 1, 2009, the new FHA upfront mortgage insurance is equal to 0.01 percent, or 1 basis point.
For example, if your FHA Streamline Refinance is for a new $100,000 mortgage, the FHA will assess a $1 upfront mortgage insurance premium (MIP) to be paid by you at closing. The FHA automatically rolls the $1 payment into your new loan balance.
This is a huge discount over the FHA’s standard UFMIP payment of 1.75%; equivalent to $1,750.
Meanwhile, for FHA Case Numbers assigned on or after June 11, 2012, and for loans endorsed prior to June 1, 2009, costs for the other type of FHA mortgage insurance — annual MIP — moves to a standard 55 basis points compared to the current rate of 1.25%.