FHA to cut fees on refinanced loans

  1. Stacie L profile image88
    Stacie Lposted 5 years ago

    By Teresa at MSN Real Estate Mar 6, 2012 2:10PM

    Obama's plan would save homeowners about $1,000 a year on fees, in addition to what they save with the refinance. The program is limited to FHA loans issued before June 1, 2009.

    President Barack Obama announced a program today to save homeowners who refinance their FHA mortgages an average of $1,000 a year in addition to whatever they save by refinancing.

    The plan cuts the upfront mortgage-insurance premium from 1% of the loan amount to 0.1%. The annual fee will be cut from 1.1% to 0.55%. The White House estimated 2 million to 3 million homeowners would be eligible, though it predicted that only several hundred thousand would refinance.

    To take advantage of the discount, homeowners must be current on their FHA mortgage payments. They do not have to have any equity in their homes; underwater homeowners can also refinance under the plan, which requires no appraisal or income verification. Loans must have been taken out before June 1, 2009, and be done through the streamline program. The Associated Press has a Q&A.
    http://realestate.msn.com/blogs/listed- … n-us_msnhp
    well any little bit helps..but is it enough?