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Obama announces Mortgage Insurance decreases for Streamline Refinances!

March 12, 2012

The President announced today that there will be substantial changes in the fees charged to FHA-insured borrowers who want to refinance their current loan into another FHA-insured loan product. In addition, substantial recompensation plans were in the works for servicepersons and veterans who fell victim to erroneous foreclosure proceedings by their lenders. The best part is that this decision does not require the approval of Congress and so it can go into effect almost immediately.

How does the program work? It’s relatively simple. Currently, borrowers who wish to have an FHA-insured streamline refinance loan must pay an upfront Mortgage Insurance Premium of 1% of the total outstanding loan balance, in addition to 1.15% as an annual premium. With this new program, the new upfront Mortgage Insurance Premium is only .01% of the total outstanding loan balance, and the annual premium is only .55%! This translates to a typical borrower saving somewhere around $1000 per year. And, of course, this is in addition to any other savings the borrower can expect from having a new lower interest on top of those other deductions.

What does this mean for you? It might mean a difference in your pocket at the end of the day and some breathing room where your financial obligations are concerned, if you meet the criteria for this special program. To find out if you do, you need to answer “yes” to the following questions:

• Do you currently have an FHA-insured loan through either Freddie Mac or Fannie Mae?

• Did your loan originate prior to June 1, 2009?

• Are you current on your mortgage and other credit responsibilities?

• Do you wish to refinance your current loan into a new lower rate?

If you answered “yes” to these questions, then you might just qualify to take advantage of this new and exciting program that is being offered by the current administration. If you want more information or want to see if your current loan qualifies, give me a call to discuss your particular scenario. You have nothing to lose except your curiosity about whether or not this program can help you and your family get the financial break you deserve.

Don’t hesitate, give me a call for a No-Obligation analysis of your current mortgage situation. You’ll be glad that you did!

Se Habla Espanol

Melba Baquero
559-273-5012
DRE 01354095
NMLS 255430
Southwest Riverside County/San Diego County

FOR A FAST PRE-APPROVAL:
http://pmcmortgageloans.com/mortgage_application.php

First, complete a loan application on our website
-Go to http://www.pmcmortgageloans.com
-Click on Apply Now at the top
-Scroll to the middle of the page and Click on 3. Full Application
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