If you currently have an FHA Loan, then you need to read this article very carefully as you can be throwing away a lot of money currently when you are entitled to be saving. With mortgage rates still hovering near record lows, it only makes sense that everybody should be in the thought that refinancing is a viable option for nearly everyone and the FHA makes it easier than even you may think. Some basic information on FHA Loans is that they are offered at competitive rates and are affordable to most potential home buyers which is why they are so popular. However, their mortgages require an Up-Front Mortgage Insurance Premium (UFMIP) when obtaining the loan and a Mortgage Insurance Premium on a monthly basis to the amount of 1.35% annually. The 1.35% came into effect after the Great Recession in order for the FHA to have the necessary funds to protect against foreclosures and bankruptcies of homeowners who lose their homes. However, in 2015 the FHA MIP was reduced from 1.35% to 0.85%. Now it would be too easy for the FHA to just modify your loan and give you this savings, so you are going to need to find a lender in order to refinance your loan to Get Rid Of FHA MIP.
The quickest and easiest way to Get Rid Of FHA MIP is to go through the FHA for an FHA Streamline Refinance. The Streamline Refinance is one of the easiest refinances that are offered to the public. Per FHA Guidelines the FHA Streamline Refinance does not require a new Home Appraisal, does not check your current credit scores, and there is no income verification. The premise here is that if you have an FHA loan currently and you were approved back when you purchased the home, there is no need to go through the documentation stage again when all you’re doing is reducing the rate of the mortgage and the MIP. As long as you have made your mortgage payments on-time for the past 6 months you are good to go and there isn’t really much more to this loan. If you have a loan that was closed 2014 and before, you will be able to show the net tangible benefit of the lower mortgage rate and lower MIP that shows that a refinance is needed.
If you are still in the market to Get Rid Of FHA MIP you don’t have to stay with your FHA Loan, another option you have is to refinance into a Conventional Loan. If you have sufficient equity in your home of over 20%, then going to a Conventional might be a way for you to Get Rid Of FHA MIP. With an LTV less than 80% Conventional Loans do not require Private Mortgage Insurance (PMI) and with a 700+ FICO score, you are able to get some of the best rates out there. This would be another way to get out from under the FHA MIP.
As you can see, it is definitely in your best interest to Get Rid Of FHA MIP and for you to refinance to have on your MIP and possible rate. There is no need to be throwing away money to higher mortgage rates and higher MIP. If you are looking for a lender to get your refinance done quickly and effortlessly, you need to reach out to me ASAP. You can get a hold at me at 888-900-1020, firstname.lastname@example.org, or by visiting my website www.loanconsultants.org. Reach out to me today and we can put a plan together to get your payments reduced!