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James Peck

Decrease to Annual Mortgage Insurance and Up Front Mortgage Insurance on FHA Streamline Refinances

Tuesday, April 3, 2012 - Article by: James Peck - Freedom Financial Services - Message

For all SF Forward Streamline Refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009, the annual MIP will be 55 bps (regardless of base loan amount), and the UFMIP will decrease from 1% to 0.01% of the base loan amount. These changes apply to case numbers assigned on or after June 11, 2012.

What this means to you as the consumer. If your existing FHA mortgage was originated prior to May 31, 2009, and refinancing after interest rates have come down was not an option for you due to the increase in mortgage insurance, you can now do this without the penalty of higher mortgage insurance. Your mortgage insurance will remain the same therefore, the principal and interest savings will not be offset by the higher mortgage insurance premiums.

If you have been on the fence over the past couple of years due to the higher mortgage insurance premiums, now would be the time to look into refinancing.

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