In a speech given in Orlando today an official with the Federal Housing Administration indicated that the FHA is planning to increase its monthly mortgage insurance fees again. We get this from a recent HousingWire story on the topic:
The Federal Housing Administration will announce additional premium changes to its mortgage business and streamlined refinance programs in the coming days.
FHA Acting Commissioner Carol Galante said in a speech at the Mortgage Bankers Association servicing conference in Orlando, Fla., Wednesday that the changes are on their way.
As part of the payroll tax extension agreed to last fall, the FHA will raise premiums on its forward mortgages by 10 basis points and by 25 bps for jumbo loans.
If you have an FHA mortgage with an interest rate of 5% or higher contact us in the sidebar to learn more about the FHA streamline program. With rates on 30 year fixed loans sometimes as low as the high threes in recent weeks now is an excellent time to look into the FHA streamline program. The FHA streamline program lets responsible borrowers who have FHA loans now replace their current 30 year fixed FHA loan with a new 30 year fixed FHA loan at a much lower interest rate without requiring an appraisal or income verification. So with FHA streamlines it doesn’t matter how underwater the borrower is. But the monthly mortgage insurance premium already significantly increased for FHA loans last year and if it gets much higher it will be harder to streamline.
Contact us in the sidebar to learn more about this program and the other government-backed refinance programs available.