FHA REFINANCE PROGRAM GETS BOOST|League City, TX|Marilyn Wier 713-542-8461

FHA REFINANCE PROGRAM GETS BOOST|League City, TX|Marilyn Wier 713-542-8461

WASHINGTON (U.S. Department of Housing and Urban Development) – Price cuts to the Federal Housing Authority’s (FHA) Streamline Refinance Program could benefit millions of borrowers with FHA insured mortgages.

Beginning June 11, the Upfront Mortgage Insurance Premium will drop to just .01 percent and reduce its annual premium to .55 percent for certain borrowers.

For the 3.4 million households with existing FHA-insured mortgages endorsed before May 31, 2009, refinancing through the new streamlined process could save about $250 per month or $3,000 a year. The newly discounted prices also allow borrowers to refinance into the lower-cost mortgage without the need for additional underwriting.

FHA-insured homeowners can determine their eligibility by contacting their existing lender.

The changes apply to mortgages insured under the FHA’s Single Family Mortgage Insurance Programs, except Home Equity Conversion Mortgages (HECM), Section 247 (Hawaiian Homelands), Section 248 (Indian Reservations), and Section 223(e) (Declining Neighborhoods).

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