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What Does it Cost to Buy a House in California
Want to reduce your overall monthly mortgage payment on your California home? If your current loan is a FHA with mortgage insurance, you have an option to reduce your monthly payment on the FHA Streamline Refinance Home Loan Program.
This program allows an existing FHA borrower to refinance into a lower mortgage payment without spending the money for an appraisal inspection, appraisal report not required. So if you bought a home that has not seen equity appreciation to refinance out of the FHA loan, then the streamline is perfect for your situation, since no appraisal report is required.
Also, if you purchased a primary home after June 3rd 2013 and did not put more than 10% down payment at the time of purchase on the FHA loan, then the mortgage insurance you have now will remain in the mortgage payment throughout the term of the loan.
With the rates dropping over the past couple of weeks and HUD’s big announcement that the monthly mortgage insurance premium on January 26th 2015 will be reduced from 1.35% to .85%. Making the monthly savings on the mortgage payment that much greater. So if you are stuck in the FHA loan and can not refinance out into a Conventional loan because there is not enough equity in your home or maybe even the credit, then a FHA streamline refinance is the route to go.
This is an easy refinance program with very little paperwork required. We will need to run credit to establish a middle credit score and obtain a mortgage rating report. The refinance requirement will vary from lender to lender, but what is universal with respects to the underwriting guidelines is that the refinance must have a monthly savings of 5% of the current principle, interest and mortgage insurance payment.
Example: Principle and Interest payment is $1000 and the mortgage insurance payment is $150, what you do is add those 2 figures up which equals to $1150 times that number by 5% and the monthly savings needs to be greater than $57.50 to allow the refinance to move forward.
I welcome the opportunity to discuss your goals with a FHA Streamline Refinance Home Loan Program. I would like to present some numbers for you to review to ensure your monthly savings will be meet.
It does not hurt to explore your refinance options to lower your overall monthly mortgage payment. This type of refinance is not that difficult to complete, 2 to 3 weeks processing time is all we need to fund your loan and start saving, the best part is that you will skip one month of a mortgage payment, you can do as you please with that savings.
Do not delay and miss an opportunity to refinance your FHA loan while the rates are low and easy processing to complete. Call me rate away at 909-503-5600 or complete a short injury form HERE to get started right away with a FHA Streamline Refinance Home Loan Program on your California property.
by Nathan Rufty
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