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FHA MIP rates greatly reduced for some refinances

From Jonathan Rodd, Mortgage Advisor with Century 21 Mortgage: 802-683-0812; jonathan.rodd@mortgagefamily.com

Despite the record low interest rates, for most homeowners with a current FHA loan looking to refinance, the options have been grim.  Those looking to refinance in today's low rate environment are finding that the benefit of the low rates are offset by higher monthly mortgage insurance premiums

Good news!  FHA announced in a recent mortgagee letter that effective June 11, 2012, those whose current mortgage was originated before June 1, 2009 may qualify for dramatically reduced up-front premiums (the mortgage insurance lump-sum that is often added to your loan balance) and reduced monthly premiums. 

The new up-front premium can be as low as .01% of your loan balance vs. the current 1.75%.  The monthly (or annual, as it is referred to) mortgage insurance factor will be .55% of your loan balance vs. the currnet 1.25%.  Big savings!   Contact Jonathan Rodd to see if this can help you.  jonathan.rodd@mortgagefamily.com

 

 

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