April 6th, 2012 12:42 PM by BILL WILBANKS
Here's some really great news for those whose current home mortgage is insured by FHA. With new case numbers issued on and after June 11, 2012 FHA has drastically lowered both the Annual Mortgage Insurance premium (MIP) and the Upfront MIP (UFMIP) on Streamline refinances for those whose current mortgage was endorsed by FHA on or before May 31, 2009. So, for all loan-to-values, the new Annual MIP drops to 0.55% (as of Monday it would still be as much as 1.25%) and the Upfront MIP drops to 0.01% (as of Monday it would still be 1.75%). That's a HUGE drop in costs on the highly favorable Streamline refinance program. This program also allows you to use the original value that was used on the existing loan you now have rather than having to get a new appraisal done if you choose to do so and you can still add the UFMIP to the new loan, though you would have to select a rate level that covered your costs/escrows and prepaids or pay them yourself at closing if you preferred. This can be a great way for those eligible to be able to take advantage of lower rates today much like the new HARP 2.0 conventional program has done recently.
So if you think this may open doors for you to refinance that FHA loan...start getting your records together and be ready to take advantage of it as of June 11, 2012. As always I'm here to answer your questions on Florida loans.