Kentucky FHA Streamline Refinance Changes 2012

Kentucky FHA Streamline Refinance Changes 2012

 

 

FHA ANNOUNCES PRICE CUTS TO ENCOURAGE STREAMLINE REFINANCING for Kentucky FHA Homeowners
Millions of Kentucky FHA borrowers  and other borrowers in other states could save big on their monthly payments to FHA 

WASHINGTON – Today, Acting Federal Housing (FHA) Commissioner Carol Galante announced significant price cuts to Kentucky FHA’s Streamline Refinance Program that could benefit millions of borrowers whose Kentucky mortgages are currently insured by FHA.   Beginning June 11, 2012, FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to just .01 percent and reduce its annual premium to .55 percent for certain FHA borrowers.

To qualify, borrowers must be current on their existing FHA-insured mortgages which were endorsed on or before May 31, 2009.  Late last month, FHA also announced it will increase its upfront premiums on most other loans by 75 basis points to 1.75 percent.  In addition, FHA will raise annual premiums 10 basis points and 35 basis points on mortgages higher than $625,500. Read FHA’s new Mortgagee Letter.

“This is one way that FHA can make a real difference to help homeowners who are doing the right thing, paying their bills on time and want to take advantage of today’s low interest rates,” said Galante.  “By significantly reducing costs for these borrowers, we can make certain they cut their monthly mortgage burden which will benefit the housing market and the broader economy in the process.”

Currently, 3.4 million households with loans endorsed on or before May 31, 2009, pay more than a five percent annual interest rate on their FHA-insured mortgages.  By refinancing through this streamlined process, it’s estimated that the average qualified FHA-insured borrower will save approximately $3,000 a year or $250 per month. FHA’s new discounted prices assume no greater risk to its Mutual Mortgage Insurance (MMI) Fund and will allow many of these borrowers to refinance into a lower cost FHA-insured mortgage without requiring additional underwriting.  FHA-insured homeowners should contact their existing lender to determine their eligibility.

Last month, the Obama Administration announced a broad package of actions and legislative proposals to help responsible homeowners save thousands of dollars through refinancing. This includes the changes announced today that will benefit current FHA borrowers – particularly those whose loan value may exceed the current value of their home.  By lowering monthly mortgage costs for home-owners, FHA hopes to help more borrowers stay in their homes, thereby decreasing the potential for future default and reducing losses to the Mutual Mortgage Insurance (MMI) Fund.

The changes outlined in today’s mortgagee letter apply to all mortgages insured under FHA’s Single Family Mortgage Insurance Programs except:

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11 thoughts on “Kentucky FHA Streamline Refinance Changes 2012

  1. […] Kentucky FHA Mortgage Loans KY FHA Mortgage Loans, Louisville FHA Loans, Louisville FHA Mortgage Rates Today, Ky FHA Mortgage loans for Purchase, Refinances, Streamline, Ky First TIme Buyer HomeAboutAcceptable Sources of Borrower FundsCalculatorCustomer TestimonialsFHA Bankruptcy GuidelinesFHA GuidelinesKentucky Counties FHA limitsKentucky Credit Report Myths and FactsKentucky FHA & Credit ScoresLoan ChecklistLouisville Kentucky FHA Homes You Tube Flickr Twitter Facebook ← Kentucky FHA Streamline Refinance Changes 2012 […]

  2. The FHA is making more changes to its flagship FHA Streamline Refinance program. This is one way that FHA can make a real difference to help homeowners who are doing the right thing, paying their bills on time and want to take advantage of today’s low interest rates, significantly reducing costs for borrowers, cut their monthly mortgage burden which will benefit the housing market and the broader economy in the process… Homes in Ladera Ranch

  3. This is about easing the pressure on borrowers in a responsible way, but still most of theborrowers who might like to use the program to refinance their mortgages are facing substantial hurdles. You need to have an unblemished record of on-time mortgage payments for the last 12 months. Maybe you were late occasionally a couple of years back. That’s OK. But the last 12 months need to be pristine. Find Homes in Ladera Ranch

  4. It’s a great idea to cut the MI premiums. It goes a long way to de-leverage the housing market. I’m not sure what the reasoning is for increasing it on certain refi’s, but I suppose we should be happy to take whatever we can get.

  5. Hiya! I know this is kinda off topic but I’d figured I’d ask.
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