The Federal Housing Administration has announced that refinancing through its Streamline Refinance program that homeowners will pay less for their mortgage insurance premiums beginning on June 11, 2012. But you do not have to wait for the date to get your ideal mortgage rate just in time for lower mortgage rates and get your quote established!
The FHA mortgage rates have been declining at a gradual pace recently but insurance rates have remained steady. Currently, owners of these households pay almost three times the rates that FHA-mortgage insurance holders held only 4 years ago. But with the new FHA homeowners’ influx, the rates have been far more attractive than its insurance rates. This comes hand-in-hand with such low mortgage rates.
For those who have been tied with the FHA, it creates a challenge for those to be eligible for the streamline program due to its prerequisite of having a mortgage payment of falling at the minimum of 5% not being fulfilled. This has been the problem for millions of FHA-backed homeowners which has left many in a financial dilemma.
The new FHA mortgage insurance premium program aims to help these long-time backer owners for those who took out mortgages before June 1, 2009. The requirements state that all loans are at a 0.55% annual mortgage insurance premium, have a 0.01% upfront mortgage insurance premium, and a 15-year fixed loan-to-value ratio of about 78% or less. The time is now to consider the new program because there are no additional fees or adjustments that follow.