While new FHA loan costs keep increasing HUD released some great news for those who already have one.
If you’ve been current on your payments and got your FHA loan on or before May 31, 2009 you’re eligible for the new program that begins on June 11th 2012.
Here are the details:
-New upfront mortgage insurance premium will be .01% of your base loan amount
-New monthly mortgage insurance premium is 55 basis points
Normally with FHA streamline loans the current rules apply. An example: Your original FHA loan in January of 2009 included a 2.25% upfront premium and a 55 basis point monthly premium. If you did a streamline refinance today (3/6/12) you would have to pay the current 1% upfront premium and 115 basis point monthly mortgage insurance premium. Because of the increased monthly mortgage insurance your savings, even with a lower interest rate, would be small. In this example on a $300,000 purchase price with your original FHA purchase loan, if you refinance under the current rules you’d save $182/month and under the new rules as of June 11, 2012 you’ll save $343/month or $161 more.
Contact us today to start your refinance!
Michael Regan (NMLS #275695) is a mortgage banker who specializes in Marin, Sonoma, and Napa counties. You can reach him at 415-672-2499 or 707-508-8473 for all your financing needs.