The Federal Housing Administration recently released details of a program that will reduce costs for hundreds of thousands of home-owners. The word has not yet reached many who are eligible for the program. If you are a homeowner that has an FHA mortgage, you may be eligible for a special reduced documentation refinance program which lowers standard FHA insurance charges by as much as 75%.
The announced plan will lower mortgage insurance premiums, making it easier for borrowers to take advantage of record low rates. This means that you may qualify to refinance your mortgage and save money each month!
Under this program, up-front mortgage insurance premiums and annual fees will be reduced from 1 percent to .01 percent of the total loan amount for borrowers with FHA loans closed before June 1, 2009. In addition annual fees will be cut to .55 percent from 1.15 percent. This streamlined refinance program is available to borrowers who are current on their payments and may qualify even if they owe more than their homes are worth.
This FHA Streamline Program is in place for a limited amount of time and not everyone qualifies for the discounted rates. To find out whether you qualify and by how much you can lower your payment, contact us right away.