Breaking News: FHA Streamline Mortgage Refinances Are On Fire!

The Federal Housing Administration recently reported that applications for streamline refinancing of existing FHA borrowers has risen 400% in June from the month prior.

Albany, NY (prHWY.com) August 29, 2012 - The Federal Housing Administration recently reported that applications for streamline refinancing of existing FHA borrowers has risen 400% in June from the month prior. A total of 84,600 new applications were taken accounting for $19.8 billon of FHA-insured loans in June. Granted that the volume was down 7% from may but we feel the reason for this decline was due to lenders and refinancing borrowers held off filing applications in early June in order to meet the June 11 start date of the streamline refi program.

The newly open streamline program is designed to give FHA existing borrowers who haven't refinanced existing loans that were originated prior to June 1st 2009 the opportunity to take advantage of today's low refinance rates and benefit from reduced mortgage insurance premiums as an incentive to refinance. Another defining characteristic of the FHA streamline program is that it may not require a home appraisal. FHA may allow borrowers to use their original purchase price as the home's current value, regardless of what the home is actually worth today. Also, Employment verification, income verification and credit score limitations are subject to lighter underwriting constraints. The thought here is that if a borrowers current mortgage payments are up to date, (and they must be current for 12 months) then by lowering the interest rate and mortgage insurance premium the borrower will be in a better position to make future payments on time. Not to mention the monthly cash savings that could be realized depending on the borrowers mortgage balance at the time of refinancing.

The FHA streamline refinance is not only good for the borrower but its good for the FHA as well. To understand why the streamline is a smart program for the FHA, we have to remember that the FHA's chief role is to insure mortgages, not "make" them. Therefore, it is in the FHA's best interest to help as many people s possible qualify for today's low mortgage interest rates. Lower mortgage rates means lower monthly payments which, should lead to fewer loan defaults.

If a borrower closed their mortgage on or after June 1st 2009 then they can still qualify for a streamline mortgage and take advantage of lower interest rates however, mortgage insurance rates are the same as they are for new FHA borrowers not reduced.
We urge borrowers to contact First Rate Funding (518-452-4700) and speak to one of their mortgage specialist. New York mortgage rates are exceptional and they stand ready to answer questions and put borrowers in the RIGHT program to suit their needs. Visit www.firstratefunding.net for more information.

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Tag Words: albany mortgage broker

Categories: Real Estate

Press Release Contact
First Rate Funding Corp.
Rosewood Plaza
427 New Karner Rd.,
Albany, NY
518-452-4700
www.firstratefunding.net

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