Effective for FHA Case Numbers assigned on or after June 11, 2012 the Upfront Mortgage Insurance Premium or UFMIP was reduced to a mere .01% while the annual MIP (collected monthly) was lowered to .55% of the new loan amount for loans endorsed by the FHA on or before May 31, 2009. This has proved to be an enormous relief for many borrowers. Borrowers who could not qualify for an FHA Streamline Refinance simply because the previous increases to the Mortgage Insurance structure did not realize a "net tangible benefit". This benefit is defined loosely as reducing the payment by 5% or refinancing from an adjustable rate mortgage (ARM) in to a fixed rate.
If you are considering a Streamline refinance I will share my 2 cents:
1) RUN... don't walk! They have changed this fee so frequently who knows how long this will stick.
2) Watch your endorsement dates! I have already seen a few borrowers who thought they were in the clear with the loan closing date however the FHA took a while longer to endorse the note. IF you are left out in the cold see #1... it could always change again for the better.
If you would like to apply for this or any other loan program contact me today!