The FHA has recently announced price cuts for their Streamline Refinance Program that could benefit anyone with a mortgage insured by the FHA. As of June 11, 2012, the FHA will lower its Upfront Mortgage Insurance Premium (UFMIP) to .01% and it will also reduce its annual premium to .55% for qualified borrowers. In order to qualify, a borrower must be current on their existing mortgage that was endorsed on or before May 31, 2009. This accounts for nearly 3.4 million households. These households pay more than a 5% annual interest rate. If they were to refinance, they could potentially save as much as $3,000 a year. By helping homeowners to reduce their monthly costs, the FHA hopes to help people stay in their homes.
