HARP refinance programs are still an excellent way to help homeowners lower their monthly payments, even for FHA loans. In fact, costs to refinance FHA loans are down considerably and the process has been streamlined to make it much easier.
Below are some interesting statistics about the current refinancing market an it shows that with the incredibly low rates available right now, refinances make up more than three-quarters of all loan activity.
Demand for FHA refinancing more than doubled last week, following deep reductions in fees charged for borrowers seeking a streamlined refinance.
FHA refinancing hit an all-time high last week, according to Mike Frantoni, vice president of research and economics for the Mortgage Bankers Association, which issues a weekly report on U.S. mortgage activity.
Despite the sharp increase in demand for FHA refinancing, total refinance activity for the week rose only 1 percent, as demand for both conventional and HARP (Home Affordable Refinance Program) refinancing declined. HARP refinances fell to 20 percent of all refinance applications, after holding steady at 28 percent of all applications for several weeks.
As of June 1, the FHA cut the one-time mortgage insurance premium charged on streamlined refinances to 0.01 percent of the loan amount, down from 1 percent previously, and reduced the annual insurance premium to 0.55 percent, down from 1 percent.
A streamlined refinance is a type of simplified refinance in which many of the usual requirements, such as appraisals and income verification, are not required. Generally, a borrower can quality as long as they already have an FHA mortgage and have remained current on their payments.
Meanwhile, demand for mortgages to buy a home fell by 9 percent last week, and was 2 percent lower than the same week a year earlier. Frantoni attributed much of the weekly decline to the effects of the Memorial Day holiday that week.
Refinancing accounted for 81 percent of all mortgage applications last week, up from 79 percent the week before. Only 4 percent of all borrowers sought adjustable rate mortgages.
Don’t let the great opportunities available for a great mortgage pass you by. Take advantage of the many programs designed to help families lower their payments. Contact one of our refinancing professionals about a HARP refinance today by calling SLS Mortgage of Culpeper (540) 216-0665