Yesterday brought us some good news for some homeowners who would love to refinance to the current low rates, but haven’t been able to since they are underwater! HUD, or the US Department of Housing and Urban Development, announced that they have agreed to make FHA Streamline Refinance opportunities more affordable beginning June 11, 2012 for homeowners who last purchased or refinanced their home prior to May 31, 2009. Both the Upfront Mortgage Insurance Premium (MIP) and the annual premium will decrease significantly over current rates! If you have an FHA loan, you may qualify to refinance your mortgage and save hundreds of dollars per month, EVEN if your home is underwater!
- Mortgage must be FHA, not conventional (ie, you probably put 3.5% down when you bought your house)
- Mortgage must have been originated prior to 5/31/09, or last refinanced prior to 5/31/09.
- Borrower must be current on their mortgage payments
Call your lender for details to see if you qualify! I have great recommendations for Sacramento area mortgage lenders on my “vendors” page! Good luck!