This spring, the government announced plans to streamline the FHA program in order to create options for many current homeowners. This initiative was intended to make refinancing easier and more affordable for the millions of homeowners with FHA mortgages. The reduction in refinancing fees applies to borrowers who are current on payments. Previously, based on a home loan for $200,000, for a regular refinance and regular purchase, a homeowner will pay $3,500 for the upfront premium and $211 for the monthly mortgage payments. With the new streamlined FHA program that will be effective June 11th, 2012, instead of paying $3,500 upfront, homeowners will now pay $20 with the monthly mortgage insurance at $91. With this new streamlined FHA option, the homeowner will save $136 a month, just on the upfront fees and monthly mortgage payments.
For those interested in purchasing a home in Atlanta, GA, rates are still historically low and FHA allows a down payment of as little as 3.5 percent of the purchase price. The housing boom is starting to rise again, and interested homebuyers still have some time to take advantage of these current rates.
Not sure if an FHA mortgage will benefit you? Give the Mortgage Guys in Atlanta, GA a call in order to take advantage of purchasing or refinancing your home in metro Atlanta to get these great rate reductions with FHA. For those with an FHA loan, there’s never been a better time to refinance for an FHA loan, especially if their current mortgage rate is about 5 percent.