FHA is changing the mortgage insurance premiums for those that want to refinance. Effective with all FHA case numbers pulled on or after June 11, 2012, the mortgage insurance will drop for those that are refinancing FHA loans that were endorsed by June 1, 2009.
On June 11th, FHA is reducing the upfront mortgage insurance on refinances from 1.75% to .01%!!! They are also reducing the monthly mortgage insurance to .55% from 1.25%. Many people that had FHA mortgages were finding it didn't make sense to refinance based on the new mortgage insurance premiums. FHA decided that they would reduce the numbers to allow more people to take advantage of the lower rates.
This is effective only for those mortgages that were endorsed by June 1, 2009 - that doesn't mean closed, it means that FHA/HUD has actually received the mortgage and issued a mortgage insurance certificate - it can take several weeks after closing at times.
We are taking applications for the reduced rates now, you do not need to wait until June 11th. We will wait to pull the FHA case number until on or after the June 11th date.
