FHA Streamline Refinance Loan in Sierra Vista, Arizona


By Joseph Small

Over the years, the FHA home loan has been a great option for homebuyers in Sierra Vista, as well as nearby communities like Bisbee and Tombstone, Arizona. As mortgage interest rates have continued to drop to historic lows, a lot of these FHA homeowners have wondered if they could possibly refinance and take advantage and lower their monthly payments. This is where the FHA Streamline Refinance Loan comes into play.

As the name suggest, this process is very streamlined, which means less paperwork. But one of the great features of the FHA Streamline is that no appraisal is required. Yes, you read that right… no appraisal! This could be welcome news to those homeowners in Sierra Vista that have thought about refinancing, but have been hesitant because they think they might possibly be underwater with their mortgage.

FHA Streamline Update

There were some recent changes to the FHA streamline program that might help some save additional money. On June 11, 2012, these changes went into effect for those who have an FHA home loan that was endorsed by the FHA prior to May 31, 2009. If you aren’t sure, or just don’t know what that means, then please give us a call. We can explain it all and help you find out. The changes are on the Up Front Mortgage Insurance Premium or UFMIP and the Annual Mortgage Insurance (what you pay monthly).

As you may remember, the FHA charges an UFMIP that you probably rolled into your loan. It was probably a pretty chunk of change at that time. The good news is that those loans that meet the prior to May 31, 2009 endorsement date will have their UFMIP reduced to a mind-blowing .01 percent. That is huge because you aren’t raising your loan amount by any significant amount.

The other change for those that meet the May 31, 2009 endorsement date is to the Annual Mortgage Insurance. The current MI factor is 1.25%. The old factor was .55%. By grandfathering these loans into the old percent, along with lowering the interest rate will give you a much bigger savings.

So if you are think you might be interested – or just have general questions on the FHA streamline refinance loan program, then just give us a call. My team and I would love to help you out.

Note: All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice.

Joseph Small and his team at Guild Mortgage Company is your trusted source for all your FHA refinance home loan mortgage needs in Tucson, Sierra Vista, Benson and Tombstone, Arizona.

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