If you obtained a FHA loan in San Mateo County prior to May 31,2009, you may be able to benefit from the news announced yesterday. FHA streamline loans may become more affordable.
FHA mortgage insurance premiums have increased in the last several years. These increased premiums have made it less attractive to apply for a FHA streamline refinance. Although interest rates have decreased, the decrease in rates have been offset by the increased insurance premiums.
Stay tuned: the FHA streamline refinance may get real attractive shortly for homeowners in San Mateo County!
At a Senate hearing yesterday on the state of housing market, Secretary Donovan indicated that FHA would be reducing premiums for FHA loans endorsed on or before May 31, 2009. The Secretary said:
Basically, this is the first positive move that they are doing for the consumer. Probably lowering premiums to the prior rates so that those who have had FHA mortgages can refinance and lower their payments.
THIS IS HUGE!!!
"In addition to taking steps to make these refinance loans more widely available, FHA is working on adjusting the premium structure for all Streamline Refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, to further incentivize refinance activity. These changes will ensure that borrowers benefit from a net reduction in their overall mortgage payment while still ensuring FHA has the resources to pay any necessary claims."
We expect that changes to the streamline refinance program (lowering both the upfront and the annual premium) should be announced in the next week or two.
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Phil Caulfield NMLS #386911 has been helping people obtain mortgages since 1985. The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of Cardinal Financial LLC.