The White House recently announced significant changes that will reduce
the fees charged for the Federal Housing Administration's (FHA) Streamline
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
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
For more information, call 631-806-5569