Randy those are good things to take into consideration, but they are minor compared to the benefit of refinancing into a lower interest rate. Even though the new MIP does not cancel at 78%, it will take about 9-11 years for the MIP to cancel on the loans prior to June 3, 2013. Given that most loans do not stay on the books more than 5 years, refinancing into a lower interest rate is the right move for those who can qualify.
Randy Kirsch
Manchester, CT
Good morning Randy. Another very well done post, you explained it very well. There are many that are able to take advantage of the reduced monthly mortgage insurance, but I still run the numbers to make sure that an FHA loan is best for the client.
Randy Kirsch
Manchester, CT
Hi Randy. This reduction could be a refi boom for your industry.
Randy Kirsch
Manchester, CT
Real estate professionals need to alert their database contacts that it is a good time to consider refinancing their mortgage loans.
Randy Kirsch
Manchester, CT
Borrowers that have recently closed an FHA loan may get a credit against the UFMIP Ed Silva so it could benefit a large pool of people.
Thanks for sharing.
I just saw a blurb George Souto that FHA rates are "effectively" at their lowest in a long time. It may be worthwhile to run FHA numbers along with other loan products before putting a client in a non-FHA loan.
Thanks for sharing.
You are absolutely right to run all of the numbers Joe Petrowsky as we want to do the best we can for every client.
Thanks for sharing.
There could be a surge in refi applications Conrad Allen - I really hope you are correct.
Thanks for sharing.
It is a good time to consider a refinance Roy Kelley as the FHA MIP is lower and rates in general are lower among other things to be considered.
Thanks for sharing.
Good for all that go forward, Too bad for those that closed as recently as last month They pay double
Randy Kirsch
Manchester, CT