Report: One in Three FHA Borrowers Would Benefit From Refinancing
✉️ Want to forward this article? Click here.

More than a third of homeowners who financed their purchase with an FHA loan could save money by refinancing, the Urban Institute reported on Monday.
An analysis by the think tank found that a recent cut to FHA mortgage insurance premiums could make refinancing a cost-saving measure for 2.4 million FHA borrowers. With mortgage rates as low as they’ve been in more than a year, refinancing is becoming a cost-saving option for many homeowners. And as we’ve previously noted, the FHA mortgage insurance premium drop could even make an FHA mortgage a more attractive option for a person looking to refinance a conventional mortgage.
The Urban Institute made its calculations based on how many FHA loans were eligible to refinance. That excludes borrowers on 15-year plans, along with those already eligible for a separate rate cut and those with “delinquent and modified” loans. Then it looked at whether or not it would likely make sense for the remaining homeowners to refinance, considering that most people will only undergo the (costly) process for savings of at least 0.75 percent on their annual mortgage costs. (Some people, the Institute noted, will be more aggressive; others, less so.)
The Institute’s estimate is also based on current FHA mortgage rates — which it notes may continue to fall, resulting in more potential refinances, or rise, resulting in less.
See other articles related to: fha, mortgage insurance, mortgage rates, refinancing, urban institute
This article originally published at https://dc.urbanturf.com/articles/blog/have_an_fha_loan_why_nows_a_good_time_to_refinance/9536.
Most Popular... This Week • Last 30 Days • Ever

Today, UrbanTurf takes a look at the latest with the residential (and some of the com... read »

The mortgage interest deduction allows homeowners who itemize their taxes to reduce t... read »

Canal House, a Tribute Portfolio hotel, will open near the C&O Canal later this month... read »

While tariffs are often discussed in the context of their effects on manufacturing, a... read »

The new project will be located at a site that the developer purchased several years ... read »
- Jose Andres, Heating Plants And The 10 Developments Coming To Georgetown
- How Does The Mortgage Interest Deduction Work?
- Marriott Set To Open 105-Room Boutique Hotel in Georgetown This Month
- How Will New Tariffs Affect The Housing Market
- Jair Lynch Pitches 8-Story, 203-Unit Development For Arlington's Barcroft Neighborhood
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro