Time To Refinance Your FHA Loan

Dated: February 5 2015

Views: 775

Image title

According to the executive order announced yesterday FHA will almost immediately cut .5 percent from the annual premium for the FHA backed loans with terms greater than 15yrs. For most FHA loans this will reduce the annual premium from 1.35 percent of the loan balance to .85 percent. Loans with balances above the loan limits in effect in most areas and with current MIP of 1.50 to 1.55 percent will see new premiums of 1.00 or 1.05 percent respectively. The upfront premium for all loans will remain unchanged at 1.75 percent. 

Borrowers with FHA Case Numbers issued on or after January 26 will be eligible for the new premium rates. However, today's letter has good news for borrowers already in process of getting their FHA loan. Lenders will temporarily be allowed to cancel Case Numbers issued before that date.

Key points:

1) Cut applies to loan greater than 15 years (15 year loan are already at lower levels).

2)Borrowers with FHA-insured loans can refinanceand obtain the lower annual MIP, as long as the original endorsement was after May 31, 2009 (Older loans have a lower annual MIP. The annual MIP was increased from 0.55% to 0.90% in October 2010, to 1.15% in April 2011, to 1.25% in April 2012, and to 1.35% in April 2013 for borrowers with less than 5% down.)  Note: HUD told me yesterday that they expect 100,000 to 200,000 FHA-insured borrowers to refinance in the next year.

3)Lenders can cancel loans in process so borrowers can obtain lower annual MIP. As Swanson notes, there will probably be a surge in loans starting January 26th (all the canceled loans, and an increase in refinance activity).

Note: Borrowers with FHA-insured loans that are thinking of refinancing should check other alternatives (if the value of the home has increased - or other changes - maybe the borrower can get a lower rate with a different program).


Find Out If You Qualify: http://www.lowestratenetwork.com/


Read more at http://www.calculatedriskblog.com/2015/01/update-on-fha-mortgage-insurance.html#wFomXSqrtSkEWsvv.99

Want to Advertise on this Site?

Latest Blog Posts

5 Hot DIY Tips For Home Sellers To Focus On During Quarantine

It’s true that marketing a house during coronavirus may require a few different approaches than you might use in more ideal, typical selling circumstances. However, DIY solutions can still

Read More

Protect Your Email From Latest Hacking Trend

Protect Your Email From Latest Hacking Trend DAILY REAL ESTATE NEWS | FRIDAY, OCTOBER 27, 2017 Many real estate professionals have become keenly aware of targeted wire fraud scams that

Read More

6 Personal Perspectives

Want to take your career to the next level? Try implementing these 6 steps that I have learned in my time at Keller Williams called the 6 Personal Perspectives. These are

Read More

Oct 15 2018 13618 1

Breaking Down the Big, Scary Listing Agreement Into a Deal You Understand LOGISTICS  CONTRACTS, DISCLOSURES, AND PAPERWORK by Corinne RiveraPosted onJuly 16, 20186-8 minute

Read More