Check out this updated article.
As your Arizona FHA mortgage lender I wanted to share some great news for FHA borrowers that have been stuck due to rising mortgage insurance costs. This change will help Arizona FHA homeowners take advantage of record low Arizona Mortgage Rates. Check out these 2 articles and read below: http://www.housingwire.com/article/fha-raise-insurance-premiums-april
FHA Streamline Refinances Help AZ FHA Homeowners 1. NO APPRAISAL REQUIRED
2. NO INCOME VERIFICATION REQUIRED Over the past few years however, FHA streamline refinances have become increasingly difficult to complete for some homeowners. This may sound counter-intuitive as rates have dropped significantly and you would think that Arizona FHA borrowers would be able to tap into our historically low rate market to streamline and lower their payments. The trouble is that while rates have been falling, FHA’s monthly mortgage insurance factors have been rising.
Rising Mortgage Insurance has Hurt Arizona Homeowners That’s right, the factor that FHA uses to determine how much an Arizona FHA homeowner pays for mortgage insurance has been rising from .55% all the way up to the current 1.15%. What happens is that the savings that an Arizona FHA homeowner saves due to the drop in their interest rate is offset by the rise in cost in their associate monthly mortgage insurance. FHA (until now) has not allowed a borrower to be grandfathered into their original mortgage insurance cost. Instead, FHA has required that a borrower who closed on their FHA purchase using the mortgage insurance factor of .55% refinance at the current more than double mortgage insurance factor of 1.15%. To top it off, FHA requires that a borrow lower their principal and interests + mortgage insurance payment by 5% in order to qualify for a streamline refi. The new higher mortgage insurance costs have made this nearly impossible. The result is that you have many eligible homeowners who if it were not for the increase in mortgage insurance factors sitting on the sidelines admiring these drastically lower rates from afar!
Good News for Arizona Homeowners Based on FHA’s recent announcement, that just changed! I will be sure to keep you posted as we hear more about this option. As an Arizona FHA Mortgage Lender I can tell you this is excellent news! FHA made a change that will allow Arizona FHA homeowners that purchased under lower mortgage insurance factors to be able to refinance at a mortgage insurance factor lower than today’s FHA mortgage insurance factor. This coupled with today’s low Arizona FHA Mortgage rates will help homeowners save money…finally! Check out this updated article. Stay tuned! APPLY NOW for a streamline today! By Jeremy House