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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