Wow. That’s a ridiculous number, right? But according to CNBC, that’s the number that has at least 20 percent equity in their homes, good credit, a non-delinquent loan status and a rate greater than 4.5 percent, high enough to benefit from refinancing. If you didn’t know (and don’t follow us for big announcements) FHA, the Federal Housing Administration, has lowered their PMI, or Private Mortgage Insurance, rate by a half point. This is down to 2011 rates, and is HUGE. FHA Loans are great for new home buyers, and require much lower down payments than Conventional loans . The downside is that they include PMI. It’s the trade-off for the bank. Because they don’t get the money up front in the form of the down payment, they need an assurance that they can recoup the investment. That’s the PMI. For ALL mortgages for the week that just ended, rates for a conforming 30-year, fixed-rate mortgage was 3.71 percent, down from 3.74 a week ago and 3.96 at the start of the year, according to mortgage data site HSH.com. If I bored you to tears with all of those numbers, the news here is that rates are lower than our projections were at the start of the year, and are DROPPING.
FHA Loans all need to be examined, of course. We have been going through our extensive records, finding and contacting anyone who has worked with us in the past, and letting them know about the program. However, as much as you hear us on the radio, we didn’t do 7.4 million loans since 2011. So we need to get the word out. If you have a loan through one of our competitors, and they haven’t contacted you, then they’re doing you a disservice. This goes for other loans, too. If you have a mortgage, it could be the right time to refinance your loan.
So, who needs to refinance? EVERYBODY. Look at your loan statement. Find out your PMI rate if you have an FHA Loan. Find out your interest rate. Take a critical look at what you’re paying each month. Heck, get the loan statement out and call us, and we’ll help you figure it out. We want to work up the loan options for you and find out how you can save money every month. Think about the ways that you could use that money, and make a plan, whether you want to pay off credit cards, shorten the life of your loan, or just cut your payments. Call us today in St. Louis at (314) 781-9700 and visit www.thehomeloanexpert.com/saint-louis to apply online.