FHA loan programs ordinarily include an Up-Front Mortgage Insurance Premium (UFMIP) due at closing and an Annual Mortgage Insurance Premium (MIP) due with each mortgage payment. The mortgage insurance premium is based on the date on which the FHA Case Number was generated and remains until a loan balance falls under a specific amount. FHA loan holders looking to refinance could be able to obtain a reduced mortgage insurance rate. Below are details on FHA streamline refinance for Pennsylvania mortgages created before June 2009.
New Rates Effective 06/11/2012
Starting June 11, 2012, if you have an FHA loan with a case number issued on or prior to May 31, 2009, you may receive a reduced up-front mortgage insurance rate 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 changed over time and your existing premium depends on when your particular case number was issued, the years on the loan, and the amount of the loan. This new percentage is less for most homeowners who closed during that time frame and will lead to a lower monthly payment.
Benefits of FHA Streamline Refinancing
FHA allows borrowers to refinance with a streamline approach which requires no property appraisal or income verification. It is critical that you have maintained a good payment track record, that you are current on all payments, and have a minimally acceptable credit rating. You can take advantage of lower interest and mortgage insurance rates without being impacted by home market values. Although closing costs generally apply, the overall savings may make refinancing a good option.
FHA Streamline Refinance For Pennsylvania Mortgages Created Before June 2009
The FHA streamline refinance for Pennsylvania mortgages created before June 2009 is a huge benefit for home buyers who obtained a loan during the qualified dates and will result in monthly savings. This information was shared. by Diana Escobar-Wachter with Access Abstract Corporation (610-461-2910, wachterd@accessabstract.com). DISCLAIMER: All details contained in this blog are based upon HUD policy documents and facts available at the time this blog was written. This may change without notice. Always consult with a loan professional for up-to-date information on loan options.
