FHA Streamline Refinance as Mortgage Rates Decline —- By Pete Gaddi
ByWho would have thought that Fannie Mae and Freddie Mac being seized by the Feds would have leads to lower mortgage rates? Apparently a few financial analysts believed the take-over would cause interest rates for home loans and mortgage refinancing to drop. Financial advisor Scott Deal said, “the market reacted positively to Bush’s move to stabilize these two mortgage giants.”
According to San Diego government employee Donald Flood, “I have been waiting to refinance with a FHA mortgage for 9 months, but the rates kept creeping up.” Flood continued. Now I can streamline my mortgage for a lower fixed monthly payment.” If the interest rates drop a half a percentage point, Mr Flood would save about $300 a month after refinancing his $500,000 mortgage.
FHA interest rates finally dropped below 6% so there is an opportunity for borrowers to save money. FHA streamline refinancing activity rose sharply this week, after the news settled regarding Fannie Mae and Freddie Mac. If interest rates continue to drop, expect to see more borrowers who already have a FHA mortgage to refinance with their streamline option.
3 Comments
September 12th, 2008 at 6:08 am
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September 12th, 2008 at 6:24 am
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October 21st, 2008 at 6:17 am
FHA Streamlining has been the lifeblood of our sales this summer. Finally FHA has made it easy to refinance our existing clients without it costing a lot to refinance. Hopefully the Fed will cut mortgage rates more significantly!