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FHA Reduces Refinancing Fees for Homeowners

FHA Reduces Refinancing Fees for Homeowners.

The White House recently announced significant changes that will reduce
the fees charged for the Federal Housing Administration's (FHA) Streamline
Refinance Program.

Beginning June 11, the Streamline Refinance upfront fee
of 1% will be reduced to 0.01% of the total loan amount. And the annual fee
will be lowered from 1.15% to 0.55% of the total loan amount

By refinancing through this streamlined process, the average qualified FHA-insured borrower will save approximately $3,000 a year or $250 per month, on top of any savings from refinancing to a lower mortgage rate.

The "streamline" refers to the minimal amount of documentation
and underwriting that needs to be performed. Streamline refinancing can be done
without an appraisal or income verification, providing the person(s) on the loan
hasn't changed.

There are no loan-to-value (LTV) restrictions on streamline refinancing. This is significant for underwater borrowers whose loan amount may exceed the current value of their home.

Currently, 3.4 million households with loans endorsed on or before May
31, 2009, pay more than a 5% annual interest rate on their FHA-insured
mortgages.

For more information, call 631-806-5569

mvassallo@financialequities.com

www.MVmortgages.com

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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