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Obama Reduces Refinance Fees For FHA Loans

  • March 6th 2012

by UrbanTurf Staff

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Obama Reduces Refinance Fees For FHA Loans: Figure 1

In an effort to allow more homeowners to refinance, the Obama administration announced on Tuesday that it would be lowering refinancing fees on FHA loans.

The lowered fees apply to borrowers of streamlined refinancing, refinances where an FHA borrower is refinancing into another FHA-backed loan.

Under the changes announced today, upfront insurance premiums that borrowers will need to pay will drop from 1 percent of the total loan balance to .01 percent; annual premiums will also be reduced, from 1.15 percent of the loan balance to 0.55 percent.

There are some restrictions, though. The new measures only apply to FHA borrowers who took out loans prior to June 1, 2009, and the borrower must be current on their last 12 loan payments.

This announcement comes just a week after the FHA reported that it will adjust their premium structure for FHA-insured mortgage loans on April 1 in order to boost their dwindling capital reserves.

See other articles related to: fha, obama, refinancing

This article originally published at https://dc.urbanturf.com/articles/blog/obama_reduces_refinance_fees_for_fha_loans/5247.

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