We’ve gotten tons of questions from folks about the possibility that FHA is going to change the date for their “really really really” low FHA Streamline Program – allowing folks with Endorsement dates after the June 1, 2009 date to qualify for lower FHA PMI rates.
FHA mortgage rates are making new, all-time lows while — at the same time — FHA PMI rates are gearing up for an increase. This combination has fueled a spike in FHA refinance applications nationwide.
The Mortgage Bankers Association members reported that in September 2012, more than 54,000 FHA Streamline Refinance applications came in – more than double the number from one year ago.
For homeowners with existing FHA home loans, the timing is right to refinance via the FHA Streamline Refinance. Falling mortgage rates have offset rising FHA PMI rates for many folks… But that’s where the “rub” comes in for some folks who are wanting to do a streamline refinance – who have an endorsement date after June 1, 2009, and want to take advantage of a lower interest rate.
UPDATE: There could be good news this summer for folks who want to Streamline Refinance, take advantage of the program with lower FHA PMI rates, but have a FHA loan Endorsed AFTER June 1, 2009.