Posted by Eric Evans on 8:58 AM with 2 comments
Federal Housing Administration (FHA) changes involving required mortgage insurance for the life of the loan as well as higher mortgage insurance premiums have homeowners looking for alternative low cost solutions. RANLife Home Loans explains how they can help.FHA homeowners have been looking to refinance and take advantage of FHA’s low rates but recent adjustments to mortgage insurance premiums (MIP) have left them in a tough bind. With the help of RANLife Home Loans, homeowners have found a solution to be able to still refinance and take advantage of low rates while lowering or even removing their monthly mortgage insurance.
“FHA offers a great loan program,” said Ty Burbidge, one of RANLife’s senior loan officers. “It allows many home buyers to get into a home with less money out of their pocket than a typical conventional loan program, however, the offset to that is paying for higher mortgage insurance.”
As an alternative to FHA, RANLife has been refinancing their borrowers into a low cost conventional program where mortgage insurance is reduced and in most cases, eliminated completely. As the market is beginning to pick up, homeowners are finding that they have more equity in their homes and RANLife has started using this as a tool to save homeowners high costs in mortgage insurance. Guidelines used to strictly require homeowners to have 20% equity in their home; now as little as 3% equity is required.
"This is a huge deal for FHA homeowners," stated Burbidge. "Not only do they get to take advantage of current low market rates but they also get a much lower monthly payment."
RANLife recently finished refinancing a client that was stuck paying over $200 a month in mortgage insurance on his FHA loan. Prior to working with RANLife the client tried a streamline refinance that lowered his interest rate but actually increased his MIP.
After refinancing into a conventional loan, RANLife was able to help the client drop their interest rate while also removing their mortgage insurance. In the end the client ended up saving about 15 percent off of their principal monthly payment and thousands of dollars over the life of their loan
Homeowners that wish to qualify have to have made all of their payments on time in the last 12 months, have a qualifying credit score, and a small amount of equity in their home “If you are unsure if your home has enough equity, give us a call. We can provide you with a free home value estimation and figure out the right solution for you.” Homeowners as high as a 97% LTV can still qualify.
CLICK HERE FOR A FREE HOME VALUE ESTIMATION
What makes RANLife one of the best mortgage lenders to work with is their ability to customize each client’s experience to their own unique financial situation. Loan officers are trained to find the benefit for the client and sell the best program, not just the best interest rate or price. “We have the best interest in mind for all of our clients and if we don’t see a benefit in the transaction for the client, we don’t do the deal,” said Burbidge.
For some, an FHA loan still may be the best option. The best thing to do for homeowners looking to save money on high mortgage insurance premiums is to give RANLife Home Loans a call. “I recommend talking to someone right away before rates go up any higher," commented Burbidge.
About RANLife Home Loans
At RANLife Home Loans our experienced mortgage professionals view a refinance, or purchase of a home loan, as more than just a onetime transaction. We believe it is a start of a long term relationship that can save the homeowner thousands of dollars over the life of their loan. To find out more information, please visit them athttp://www.ranlife.com. Also follow them on the RANLife blog and other social media. NMLS #3151.
Read the original article on PR Web: http://www.prweb.com/releases/ranlifehomeloans/fhamortgageinsurance/prweb10865744.htm