Thursday, April 12, 2012

Louisville Kentucky FHA Changes Fees Effective June 2012

Louisville Kentucky FHA Changes Fees Effective June 2012

Good news Louisville  Kentucky  FHA loan holders – a little extra cash might be coming your way as the government has just changed Louisville KY FHA fee streamline refinance structure to get you spending more in the economy … and less on your mortgage.
Effective this June, the mortgage insurance on an Kentucky FHA loan refinance streamline will be dropping, and many Kentucky FHA loan holders will be able to refinance at crazy low rates. Which means if you pay PMI insurance, you’ll see even reduced fees! And who doesn’t like that?
Good news, FHA loan holders - your streamline refinance fees are going DOWN!

If you’re looking for the “basics” on how this will work, here’s my boiled-down version:
  • Starting mid-June 2012, the FHA is lowering the mortgage insurance premium from .096 percent to .046 percent. Which means your monthly PMI payments can go down if you refinance under this program.
  • If you are up-to-date on your current FHA mortgage, you may apply for an FHA refinance.
  • The up-front mortgage insurance premium will also be lowered to only .01, meaning that many people can now apply to refinance an FHA loan without having to come up with a few thousand before signing (or rolling that into the home loan.) Now, it will only cost you maybe $10-20 up-front, depending on the purchase price.
  • This will save you thousands of dollars.
  • This applies to loans where you want to “streamline” the refinance – meaning you have an existing FHA loan. (those who qualify must have an existing loan originated on or before May 29, 2009.)

Oh… and to Qualify for an FHA Streamline Refinance:

  • You need to ALREADY HAVE an FHA loan.
  • You DO NOT need to verify employment.
  • You DO NOT need to verify income.
  • You DO NOT need a credit score pulled.
  • You DO NOT need an appraisal.

If you're one of the lucky ones, you can actually start your application now and wait until June 11, 2012 to order your FHA case number. We can also watch rates to determine when to lock. The longer the lock period, the more the rate cost. You can see by the rates posted below - locking now with an extended lock period looks pretty good!
Here's are some scenario's for Louisville Kentucky  FHA streamlined refinances based on rates as of the writing of the post (4/11/2012) and the borrower having mid-credit scores of 700 or higher
Base loan amount of $100, 000 for a 30 year fixed rate mortgage:
FHA Streamlined Refi with existing mortgage NOT qualifying for the reduced mortgage insurance premiums (mortgage not guaranteed by May 31, 2009 or sooner by HUD):
3.750% (apr 4.743%) with a PIMI (principal, interest and mortgage insurance) payment of $559.
FHA Streamlined refi (existing mortgage was guaranteed by HUD prior to June 1, 2009) with closing by June 18, 2012 (long enough time period to obtain the reduced mortgage insurance premiums):
3.750% (apr 4.141) PIMI payment of $509.00. You don't have to wait to lock in today's low rates! This pricing is based on a 60 day lock - or you can start the process and lock in at anytime you choose as long as the lock period is beyond June 11, 2012.
Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*

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