How Long do I Have to Wait to FHA Streamline Refinance Again?

Interest rates continue to plummet this week as we see home loan mortgage rates reach the low 3% range.

It’s absolutely unheard of to have long term, 30 year interest rates this low.  It seems like only a few months ago we saw rates hit the low 4% range and everyone, myself included, thought there was no way they could possibly go lower.  We were wrong.

Highlights of the FHA Streamline Program

  • No income verification
  • No appraisal required
  • Condo OK – No condo approval required
  • Non owner occupied ok (higher closing costs)
  • Low to no closing costs (with broker credit)

One hurdle that FHA mortgage homeowners experienced was increasing mortgage insurance premiums that offset lower rates.  FHA requires that your payment improve by a minimum of 5% to qualify for this special government program.

If you are one of those homeowners that were unable to streamline refinance your FHA mortgage because of rising mortgage insurance, you may want to take another look.  Here’s a snapshot of Freddie Mac’s Historic 30 Fixed Rates chart for the past 3 years.

As you can see, if you did a streamline refinance a year ago, interest rates have dropped nearly 1% since then.  The question I keep getting from our past clients is “can I streamline refinance again?”

FHA Streamline Refinance Again?

The answer is absolutely YES!  Of course there are restrictions, let’s take a look:
  • Must meet 5% improvement in payment
  • 7 payments must have been made on previous streamline refinance
  • No late payments in the past 12 months

While mortgage insurance rates have increased slightly over the past year, it’s nowhere near the kind of jumps we’ve seen in the past.

NOTE:  If your FHA loan was originated on or before May 31st, 2009 you may qualify for a streamline refinance with almost no upfront mortgage insurance and your monthly MIP stays the same.

For more information about this special program, read this recent article:  Mortgage Insurance Costs Drop for Some FHA Streamlines  

Even if it didn’t make sense to do a FHA or VA Streamline in the past few months or if you streamline refinanced more than 7 months ago, it might make sense to take another look!

Give us a call now at (866) 317- 0682 for a no cost, no obligation savings analysis or if you have any questions about this program.

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