Well, FHA is DROPPING it’s premium for refinancing, which – along with the other streamlined guidelines (like no appraisal required and no income verification required for some borrowers) makes it a pretty great deal! We haven’t had a program this easy to do in 6 or 7 years!
In the example below – we are saving our customer $300 a MONTH!
Effective June 11, 2012 – The way you will calculate the NEW FHA Streamline Refinance upfront PMI is this:
Take the current loan balance
multiply that by 0.01%
Add that amount to your loan balance
Calculate your monthly payments on this new amount
Real Life EXAMPLE: Let’s say you took a mortgage out in May of 2008 for $175,000. Your FHA Upfront Mortgage Insurance was 1.75% of your loan, so the TOTAL loan amount was $178,062. The note rates at that time were around 6.25%. If you made all of the payments, the loan balance would be around $169,091 (on July1, 2012) and your monthly principal and interest payment would be $1096.00.
REFINANCE June 2012
We would take the current loan balance (rounded) of $169,000
multiply by 0.01% for the PMI which equals: $16.90
add that to the loan balance of $169,000 = $169,017
At 4.0% (4.298 APR) the new monthly principal and interest payments would be $806.91
That’s A Drop in Mortgage Payments of $300 A Month!
Remember, to Qualify, Your loan must have been “Endorsed” By FHA prior to May 31, 2009 – find out what that means.
Call Steve and Eleanor Thorne 919 649 5058 to learn more about the Streamline FHA Mortgage Program in North Carolina. The New Premiums for this program go into effect in June, but we can let you know TODAY if you qualify! Be sure you are getting today’s best mortgage rates! Call Steve Thorne 919 649 5058