5 Housing Trends In Spring 2012

Refinances get easier, cheaper

Refinances get easier, cheaper

Homeowners who have FHA-insured mortgages and who are current on their payments will be able to refinance with lower fees through the FHA streamline refinance program starting in June. Only loans that closed before June 2009 are eligible to be refinanced in the program.
The FHA will reduce loan fees by more than half on streamline refis. As of June 11, borrowers who refinance through the FHA streamline program will pay only 0.01 percent of the loan in upfront insurance fees and 0.55 percent in annual mortgage fees.
Another government program, known as HARP 2.0, will make it easier for thousands of borrowers to refinance their mortgages this spring.
The revamped version of the Home Affordable Refinance Program allows borrowers to refinance regardless of how underwater they are on their mortgages. Some lenders say they are focused on refinancing mortgages on loans they currently service, for now, but others accept any applicant who qualifies for HARP 2.0. To qualify, your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac, your payments must be current, and your mortgage must have closed by June 2009.