FHA loans ordinarily include an Up-Front Mortgage Insurance Premium (UFMIP) paid at closing and an Annual Mortgage Insurance Premium (MIP) due in monthly increments. The mortgage insurance amount is based on the date that the FHA Case Number is generated and remains until a loan balance falls under a specific percentage. FHA loan holders looking to refinance could be able to obtain a discounted mortgage insurance rate. The following is information on FHA streamline refinance for Melrose MA loans endorsed before May 31, 2009.
Case Numbers Created Before June 2009
Effective June 11, 2012, if you have an FHA loan with a case number obtained on or prior to May 31, 2009, you may receive a reduced up-front mortgage insurance premium of 0.01% and an annual MIP of 0.55% when you refinance. This is based on a 30-year mortgage and is not dependent on the base loan amount. FHA insurance premiums have adjusted over the years and your current rate depends on when your specific case number was issued, the loan terms, and the amount of the loan. This new percentage is lower for almost all homeowners who obtained a loan during that time and will result in a lower monthly payment.
Additional Notes on FHA Streamline Refinancing
FHA allows borrowers to refinance with a streamline approach which requires no property appraisal or employment confirmation. It is critical that you have maintained a good payment history, that you are current on all payments, and have an acceptable credit rating. You benefit from reduced interest and mortgage insurance rates without worrying about the current market value of your property. Although settlement costs typically apply, the overall savings may make refinancing a wise decision.
FHA Streamline Refinance For Melrose MA Loans Endorsed Before May 31, 2009
The FHA streamline refinance for Melrose MA loans endorsed before May 31, 2009 is a huge benefit for homeowners who secured a mortgage during the qualified timeframe and will lead to significant savings. DISCLAIMER: All details provided in this blog are derived from official documents and details available at the time this blog was written. This is subject to change without notice. Always consult with a mortgage professional for accurate details on loan programs.