FHA Refinances - Update with the PMI Factor Recently

Recently the government lowered the PMI factor on FHA Streamline refinances for properties that were bought prior to June 1st 2009. Up until about a month ago the PMI factor was at 1.15 for most FHA Streamline refinances and most people bought there house when the PMI factor was at .50. That means if you tried to refinance prior to a month ago your PMI would increase by more than 230%. That basically took away any benefit with trying to refinance. Now the PMI factor has been reduced and you can now refinance and the PMI factor would be at .55 for most refinances. That means when you do a refinance now your PMI would stay roughly the same and you can lower your rate and payment with no appraisal and most likely no closing costs as well. The requirements are no late payments in the last 12 months, 640 minimum credit score, no debt to income ratio requirements and a verification of employment during the processing of the loan. Underwater properties are eligible as well because there is no appraisal that is required.

Any bank participating in the FHA program should be able to help you out with this if you are interested in refinancing your FHA mortgage. If you would like to contact me to help you out with this or have any questions please let me know. I work as a loan officer for EverBank and my direct number here is (904) 623-8642.
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