FHA Lowers Mortgage Insurance Save $$$

Lower FHA Mortgage Insurance + lower interest rates = BIG SAVINGS

Effective January 26, 2015, HUD has reduced FHA Mortgage Insurance premiums by 0.50% or 50 basis points.

Take advantage of this lower monthly premium

If you have obtained an FHA mortgage within the recent few years, you might be able to lower your mortgage payment due to this reduction in mortgage insurance rates and today's lower interest rates.  The previous standard FHA MI rate that most borrower's saw for a 30 year fixed was 1.35%.  That rate for the same type of FHA loan today is .85%.  Those are both for loans where the term is 30 years.  If you elect to take a 15 year term & have 10.01% equity in the home, then that Mortgage Insurance rate dropped to .45%.  All of this was spelled out in the Mortgagee Letter issued by US Department of Housing and Urban Development dated January 9, 2015. This change does not apply to Single Family Home Forward Streamline Refinances that are refinancing existing FHA home loans that were assigned an FHA case number on or before May 31, 2009.  These new mortgage insurance rates apply to case numbers assigned on or after January 26, 2015. This change by FHA is done so in order to achieve the best balance between the housing needs of the borrowers and the needs of FHA's mortgage insurance programs in order to serve & minimize risk. FHA interest rates are still at all time lows making the option of a refinance that much more attractive to the homeowner.  Many people refinancing right now are those that have the old MI premium of 1.35% and were probably buying their home when rates were around 5%.  Some are even finding that their neighborhood has seen appreciation if they bought in the last 4-6 years allowing for the discussion of a possible cash out refinance.  Or at the very least, with just minor appreciation, you may be able to include the costs of the refinance into your new loan amount minimizing or eliminating any need for cash out of pocket. Our requirement is that you would need to cover the cost of the appraisal to get through underwriting.  If you aren't increasing the loan amount beyond the previous loan amount, then there is a chance that you'll be able to complete the streamline refinance without the cost of a new appraisal.  We must be able to show a 5% reduction in monthly mortgage payment as a benefit to the borrower for FHA to back the loan.  With both mortgage insurance lower & interest rates lower, this becomes much easier to attain.

The items you would need to get together are the following:

1.  Your most recent mortgage statement - no more than (one) 30 day late payment allowed in the previous year 2.  Your most recent annual homeowners insurance statement - this is so we can re-issue a new policy with our mortgagee clause 3.  Your ID & SSN Card 4.  Your old HUD-1 settlement statement that you received from the title company during your last refinance or your purchase 5.  Your most recent 2 years worth of tax returns & W-2 's issued by your employer 6.  Your most recent 30 days worth of check stubs 7.  Sign a borrower's authorization so we may pull credit 8.  If cash needed to close, you'll need to show the last 2 months (60 days worth) of bank statements All of these things can be scanned & emailed or faxed to Casey Moseman at 1-800-630-0896.  Or if you prefer, you can schedule a time to meet her at the office in person so she can make copies for you.  From that point, it would take a mere 48 business hours to have your new e-file executed and the process rolling to get the refinance underway. Don't let this period of time pass you by - get the process started today for a refinance.  You can be done in 30 days and be able to skip 1 months mortgage payment in the process.  

REFINANCE TODAY Out of your current FHA Loan Casey Moseman, CMPS 702-271-1274