There continues to be significant discussion by our legislators to help home owners take advantage of the historic low rates if their loan is NOT backed by Fannie Mae or Freddie Mac.
Although there is NO formal program in place for many folks, FHA has finally stepped up to the plate to assist people that currently have FHA loans, updating the FHA Streamline Refinance Program.
The Federal Housing Administration is allowing these loans to keep their current rate of mortgage insurance in place. At the same time on new FHA loans they have continued to increase the monthly amount of mortgage insurance since late 2010, by approx 44 percent. Your existing, lower rate of mortgage insurance on your mortgage is grandfathered in.
Few Key Points:
♦ Applications can be taken on or after June 11th of 2012
♦ 30 Year Fixed rates for FHA loans are now under 4 percent
♦ Based on a $150,000 loan amount with a note rate of 5 percent, borrowers can save approx. $130 per month
♦ There are even loan options with NO closing costs
To qualify, your current FHA mortgage must have closed prior to May 31st of 2009.