Do you have a FHA loan that you want to do a streamline refinance and it was endorsed prior to June 1st 2009? Lucky you. Your mortgage insurance premiums are "grandfather" and you will pay a reduced rate for both upfront and annual premiums. If you have any questions about a FHA streamline refinance please contact me.
UPFRONT: .01 percent of the loan amount. If your loan amount is 200,000 then your upfront MIP will be $20.00. Not to bad.
ANNUAL: .55 percent of the loan amount for most cases. This factor is significantly less than the current MIP factor of 1.25% for most loans.
If you are within 3 years of your last FHA loan you may qualify for a partial refund of your upfront premium.
If you loan was endorsed on or after June 1st 2009 and you want to refinance your MIP's will be the current standard rates. For some borrowers it may still make sense to refinance with the higher rates depending on your current mortgage interest rate.
Remember the MIP rates on 15 year loans are different than the rates on a 30 year loan:
LTV> 90% your annual MIP is .6 percent
LTV< 90% you annual MIP is .35 percent
LTV< 78% no annual MIP
If you are borrowing on a house in a FHA high cost area your premiums might be higher.
Remember that FHA uses a net tangible benefit qualification for streamline refinances. Your monthly payment must decline by 5% or more unless you are refinancing from an ARM to a fixed rate.
The FHA streamline refinance is one of the easiest loans to qualify for and offers a great benefit for many owners.
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