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Rates are flat today. Today’s rates with no lender fees are 3.875% APR on a 30 year, 3.125% APR on a 15 year and 3.0% APR on a 10 year. (click here for details)

Well, that didn’t take long. HUD announced today that it will in fact reduce the UPFRONT and Annual mortgage insurance premium on all FHA STREAMLINE refinance loans.
Check it out in today’s video:

low-rates
This means if you currently have an FHA mortgage, and it was insured by FHA before June 1, 2009, you are eligible for the reduced mortgage insurance premiums coming June 11 of this year.
This is going to be great for a lot of you out there who were looking to refinance your current FHA mortgage with a higher rate into today’s extremely low rates – Today’s FHA rates are in the high 3s – depending on your loan scenario.
When FHA increased the mortgage insurance premiums in the past, it made it so it was not worth it to refinance from a 5% rate to a 4% rate. The premiums were too high for it to make sense.
Now this will take care of that issue and make refinancing your current FHA loan a must in today’s low rate environment.
Let’s take a look at the two changes that make this possible.
1. The current upfront mortgage insurance premium is going from 1% to .01% of the base loan amount.
2. The annual or monthly mortgage insurance is going from 115 bps to 55 bps.
Here is why it’s so important to consider today. Rates on an FHA 30-year fixed loan are in the high 3s.What do you think rates will be in five to 10 years from now? I can tell you it won’t be in the 3s or probably even in the 4s.
This makes a 150,000 mortgage transaction at a 3.75% rate go from this $701 P&I 145 MIP (846) to this $695 P&I 69 MIP ($764). That is the difference between it making sense to refinance and not doing it all.
Again – this is for streamline refinance transactions only. With today’s rates you should be able to do a streamline refinance transaction with NO appraisal, NO income verification and little to NO closing costs.
This is no joke! Refinancing your current FHA loan is a no-brainer if your current rate is above 4.5%.
So now it makes more sense, but you still need to wait until June 11. So contact your lender and work up some numbers to see if a streamline refinance is for you.
OK – I want to remind everyone of our Facebook contest we have going on to win an Apple TV. Go to our ratesinmotion Facebook page, and post your favorite CLEAN joke. The person with the most likes will win the Apple TV. Here is one of my favorites – Lending is like making sausage. You are glad to be there at the end, but you don’t want to see any part of the process. Love it!
If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.
Let’s change the way people shop for a mortgageā€¦forever!
– Mike
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

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