The Obama administration today announced a plan that will reduce the cost of refinancing for 2 to 3 million homeowners. The plan announced that the Federal Housing Administration (FHA) will reduce the upfront mortgage insurance premium (UFMIP) form 1% to 0.1%, and the monthly insurance premium from 1.15% to 0.55%. The combination of these can save homeowners hundreds of dollars per month in fees, and allow them to take advantage of today’s historically low mortgage rates.

To qualify for this new plan, the current mortgage being refinanced must be an FHA loan originated prior to June1, 2009. The new loan must be an FHA Streamline refinance. The current mortgage must have also been current for the prior 12 months.

To find out if your loan qualifies, contact us today to speak with one of our FHA loan specialists.

With the resurgence of FHA home loans, many home owners are wondering if they can benefit from an FHA loan. The truth is that you may or may not benefit by converting your existing loan into an FHA loan when you refinance.

Some of the factors that can determine if an FHA loan is right for you:

• Loan To Value
• Home Value
• Size of Existing Loan
• Credit Score
• Amount of Cash You Want to Take Out

With the many changes that have occurred with FHA loans, it is possible that even if you didn’t qualify six months ago, there may be a loan program that is right for you.

One of our mortgage professionals can help you determine if an FHA loan is right for you quickly with no costs.