A new program from the FHA is aimed at saving homeowners some big bucks by helping reduce that monthly mortgage payment.
For the past few years, the Bruins hoped refinancing would leave them more money for their growing family.
But once they paid for an appraisal and today's higher mortgage insurance, it was more of a hassle than it was worth.
"Since we have a FHA loan the cost of the mortgage insurance has gone up a lot so even though interest rates dropped by a percent a percent and a half, it wouldn’t' really change our payment a whole lot,” says Ben Bruins of Waukee.
However, the new “FHA Streamline Refinance Program” is reaching out to those homeowners who have been held back from lowering their payment.
The program allows homeowners to refinance with today's low-interest rates while still keeping their original low mortgage insurance, with no appraisal needed.
"The people we've been talking with are not only able to take advantage of the lower interest rates and save a lot of money but the other benefit is they're able to do it with no closing costs and that makes it really easy to say yes to saving $100 a month if there is no cost tied to doing it,” says Loan Officer with The Tyler Osby Team, Tyler Osby.
To qualify for the program you must have a FHA loan that closed before June 1st, 2009, have on-time payments for the past 12 months, and find a lender that offers FHA loans to work with. The program officially starts June 11th, 2012.
The program will save the Bruins close to $140 a month, a savings they didn't think they'd see for several years until they were able to finish renovations on their home upping the value.
"We had planned on not doing anything until we had made enough upgrades to our house where we felt we had a high enough appraisal that we would refinance, so this is a nice surprise for us,” says Bruin.
Although the program doesn't start until June 11th, you can start talking to your mortgage professional right away if you think you qualify for the new FHA program.