Great News! The Federal Housing Administration has lowered up-front and annual mortgage insurance premiums for refinanced loans, in an effort to expand its Streamlined Refinance program.
This means that borrowers who are current on their monthly payments can refinance and save even if they owe more than their home is worth!
FHA has permitted streamline refinances on insured mortgages since the early 1980s. “Streamline refinance” refers only to the amount of documentation and underwriting that we must perform, and does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance are:
Polaris Home Funding may offer streamline refinances in several ways. We offer "no cost" refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, we pay any closing costs that are incurred on the transaction. FHA does not allow lenders to include closing costs in the new mortgage amount of a streamline refinance. Investment properties (properties which the borrower does not occupy as his or her principal residence) may only be refinanced without an appraisal.