FHA loan programs ordinarily include an Up-Front Mortgage Insurance Premium (UFMIP) due at closing plus an Annual Mortgage Insurance Premium (MIP) billed in monthly installments. The mortgage insurance amount is based upon the date on which the FHA Case Number is assigned and remains until a loan balance drops below a certain percentage. FHA loan holders thinking of refinancing could be eligible for a lower mortgage insurance rate. The following is information on FHA streamline refinance for Burlington MA loans starting June 11, 2012.
Changes On June 11, 2012
Effective June 11, 2012, if you hold an FHA loan with a case number issued on or prior to May 31, 2009, you may receive a discounted up-front mortgage insurance premium of 0.01% and an annual MIP of 0.55% when you refinance. This is based on a 30-year loan and is not dependent on the base loan amount. FHA insurance rates have altered over the years and your existing premium depends on when your individual case number was pulled, the loan terms, and the base loan amount. This new amount is less for a majority homeowners who obtained a mortgage during that time frame and will lead to a reduced monthly payment.
Additional Information on FHA Streamline Refinancing
FHA allows homeowners to refinance using a streamline process which requires no property appraisal or income confirmation. It is critical that you have a good payment track record, that you are up to date on all payments, and have a minimally acceptable credit rating. You benefit from lower interest and mortgage insurance rates without worrying about the lessened market value of your property. Although settlement costs typically apply, the overall savings may make refinancing a good option.
FHA Streamline Refinance For Burlington MA Loans Starting June 11, 2012
The FHA streamline refinance for Burlington MA loans starting June 11, 2012 is a huge benefit for borrowers who obtained a loan during the qualified timeframe and will lead to monthly savings. This information was shared. by Peter DaMore with Law Offices of Peter T. DaMore Jr. (781-229-7900, firstname.lastname@example.org). DISCLAIMER: All information contained in this blog are based upon official documents and facts available at the time this article was prepared. This is subject to change without notice. Always speak with a loan professional for accurate details on loan programs.