OBAMA: FHA Premiums Lowered for Refinancing, Compensation for Military Members..

Great news was released by President Obama a few days ago in a press conference from the White House. Amongst other things, the President talked about rewarding homeowners, who have been doing the right thing and have acted responsibly, by taking a step further and “cutting by more than half the refinancing fees that families pay for loans ensured by the Federal Housing Administration.” He added that this will save the typical family in that situation an extra $1000 a year on top of the savings that they’d also receive from refinancing.

FHA is reducing its premium to .01 percent, from 1 percent, for streamlined refinancing of loans originated prior to June 1, 2009 and cutting the annual fee in half to .55 percent, from 1.15 percent. The fee cuts begin June 11.

He also talked about helping homeowners who have served our country. Homeowners who were in the military and got wrongfully foreclosed on, he said, will be substantially compensated. For members of the armed forces who have a high interest rate and were wrongfully denied the opportunity to refinance and lower their interest while they were actively serving, the banks will refund them the money with a significant penalty.

In this news conference, President Obama urged the congress several times to pass a housing assistance proposal that would apply the administration’s HARP program to all loans. Currently HARP only applies for Fannie Mae and Freddie Mac loans.

This is great news for everybody, as the President said, it’s about time that people who are responsible get rewarded for trying to keep their homes, their “American dreams”, and feel supported by their own government.

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