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2016 FHA MIP changes worth refinancing Florida

2016 FHA MIP changes worth refinancing Florida


The Federal Housing Administration (FHA) announced the reduction of it's annual Mortgage Insurance Premium (MIP) rates.

Effective on or after January 26, 2016 FHA will reduce the premium from 1.35% to .85% a reduction of .5%.

On a $100,000.00 loan this will mean a reduction of $40.21 per month.

On a $200,000.00 loan this will mean a reduction of $80.42 per month.

Combined with interest rates that are again at an all time low plus the reduction of MIP rates means that it is a great time to buy a home or refinance your mortgage.

2016 FHA MIP changes worth refinancing Florida

A borrower is eligible for a Florida FHA Streamline refinance without credit qualifying if they has owned the property for at least six months. Individuals may be deleted from the title on a streamline refinance if the remaining owner-occupant can demonstrate that he/she has made the mortgage payments during this time.

To qualify for a streamline refinance there must be a net tangible benefit to the homeowner. Net tangible benefit is defined as a 5% reduction to the principal and interest (P&I) of the mortgage payment plus the annual mortgage insurance premium (MIP) or refinancing from an Adjustable Rate Mortgage (ARM) to a fixed rate mortgage.

  • the borrower must have made at least six payments on the FHA-insured
  • mortgage being refinanced at least six full months must have passed since the first payment due date of the refinanced mortgage
  • at least 210 days must have passed from the closing date of the mortgage being refinanced

FHA refinances are designed to lower the monthly principal and interest payments on a current FHA-insured mortgage. The new loan must involve no cash back to the borrower, except for minor adjustments at closing, not to exceed $500.

New FHA Streamline guidelines

Effective with case numbers assigned on or after April 18, 2011, FHA no longer requires lenders to certify employment and income on streamline refinance transactions.

No-cost refinances, in which the lender charges a premium interest rate to defray the borrower’s closing costs and/or prepaid items, are permitted.


2016 FHA MIP changes worth refinancing Florida

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FHA loans

FHA loans require a minimum 500 credit score to buy a house or refinance

500 credit score

VA loans

VA loans require a minimum 500 credit score to buy a house or refinance

500 credit score

Fannie Mae

Fannie Mae loans require a minimum 620 credit score to buy a house or refinance

620 credit score

USDA loans

USDA loans require a minimum 580 credit score to buy a houseor refinance

580 credit score

HOMEPATH

HomePath loans require a minimum 620 credit score to buy a house

620 credit score

HARP refinance

HARP loans require no minimum credit score torefinance

No minimum credit score

Freddie Mac

Freddie Mac loans require a minimum 620 credit score to buy a house or refinance

620 credit score

Want to know if you qualify for an FHA loan? Get pre-approved for an FHA loan online.

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