Friday, June 8, 2012

Save TONS of Money on your FHA Mortgage



As I've mentioned before, I love saving money in all aspects of my life.  The largest bill we pay each month, BY FAR, is our mortgage payment.  Orange County has a lot of great perks, low priced housing is not one of them.  So, in an effort to save money, I started doing research on refinancing options.

 I stumbled upon a new FHA streamline refinance program that was going to take place on June 11th of this year.  Because we have a FHA loan, I immediately called my bank and our previous mortgage broker to get more information.  Surprisingly, our broker had no idea about the program.   So, of course, I spammed him with links and data!  Our broker, after reading my links, realized that not only did we qualify for the program; it would save us a LOT of money! 

If you currently have a FHA loan, here are the rules for the new program:

*  You must be current on your existing FHA Mortgage (USDA, VA and Conventional loans do not qualify)
*  Your current FHA mortgage must have been endorsed prior to May 31, 2009.
*  Additionally, FHA says that to qualify:
*  Employment verification is not required with an FHA Streamline Refinance
*  Income verification is not required with an FHA Streamline Refinance
*  Credit score verification is not required with an FHA Streamline Refinance
*  A new appraisal is not required with an FHA Streamline Refinance

This new program will drop your Upfront Mortgage Insurance Premium to just .01 percent!  It’s ideal for our Orange County economy because it DOES NOT require an appraisal (so don’t worry if you are upside down on the house).  And with an approximate 3.875% (or lower) 30 year fixed rate; it becomes money in the bank… A LOT of money in the bank. 

If you think that this deal may work for you, then get on the phone and call your broker.  All applications must be started AFTER June 11, 2012.  From my own personal experience, do not call your actual lender.  I was told that it would take 60-90 days to have a return call, only to find out that the person calling me back is just a regular private Mortgage Broker not a bank employee. 

Also shop around and compare costs, you want little to no out of pocket but make sure they aren’t rolling your fees into the loan.  Be smart, educated yourself on the program, and really read the fine details.

I hope this program works out for at least one of you.  I know that for our family, we might actually be able to put money in our kid’s college funds (or bail funds, depending on the child).

Here is a link on the program for more details:

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