iFreedom Direct Offers FHA Streamlines with Reduced Mortgage Interest

SALT LAKE CITY, UT, June 11, 2012

iFreedom Direct Corporation, a dedicated government-backed lender, is now offering FHA Streamline refinancing based on the new reduced mortgage insurance rates announced by the Department of Housing and Urban Development (HUD) on March 6, 2012. The price reductions take effect June 11, 2012 for current FHA borrowers whose loans were endorsed on or before May 31, 2009. The top-ranked mortgage company will feature a reduced upfront mortgage insurance premium (UFMIP) of just .01% and an annual premium of .55% for certain FHA Streamline refinance loans.

Reduced mortgage insurance rates for FHA Streamlines are in answer to recently imposed fee hikes for other mortgage programs in conjunction with the Payroll Tax Cut Extension Bill. The Bill resulted in an FHA increase to upfront mortgage insurance premiums (UFMIP) on single-family loans from 1% to 1.75%. Additionally, the Bill increased annual mortgage insurance premiums (MIP) by 10 basis points, or .1%. This makes a typical 30-year FHA loan of up to $625,500 cost 1.25% in annual MIP.

The cost of mortgage insurance premiums made it prohibitive for many FHA borrowers to refinance home loans and many had to sit on the sidelines while their neighbors took advantage of historically low rates. Now, select FHA borrowers who endorsed their loans on or before May 31, 2009 and stayed current on their payments may qualify for this FHA Streamline refinancing program and reap thousands of dollars in savings.

As example, consider a hypothetical 30-year $200,000 loan at 4% interest. On a regular FHA refinance loan, the UFMIP would be about $3,400. With the new FHA Streamline rates, the UFMIP is only $20. In addition, this select group of FHA Streamline borrowers will pay just .55% in monthly MIP for the same loan -- slashing monthly MIP payments by more than half. That's around $200 MIP per month for the regular FHA refinance loan compared to about $90 MIP per month for the FHA Streamline.

iFreedom Direct Production Manager Dave Turville, says, "This Streamline reduction couldn't have come at a better time and we're going to make it our mission to educate homeowners about this opportunity."

FHA borrowers who have been thinking about refinancing at today's low interest rates, but haven't due to higher mortgage insurance costs, should think again. They may qualify for the cost-free Streamline refinance program and save themselves thousands of dollars of mortgage insurance in the process. The FHA Streamline program allows borrowers to take advantage of remarkably low interest rates and realize significant savings with quick and relatively easy refinancing, as less income and credit qualifying is typically required for FHA Streamlines.

As a leading lender of federally-backed mortgages, iFreedom Direct has historically offered no-cost Streamlines -- no origination fee, no closing costs, and no appraisal in most cases. If title fees apply, for a limited time on this FHA Streamline Refinance program, iFreedom Direct will pay them. And, with iFreedom Direct's experience in government-backed lending, most Streamlines processed through the company close in less than two weeks.

Based on statements made by U.S. Treasury officials, mortgage interest rates are expected to remain low for the remainder of 2012 and into 2013. FHA Streamlines are a perfect way to make the most of these low rates with minimal out-of-pocket costs.

iFreedom Direct is a top-ranked government-backed lender providing the country's eligible borrowers with VA and FHA mortgages. The company offers federally-guaranteed and -insured purchase and refinance loans and funds mortgages in nearly every U.S. state. NMLS #3122.

To learn more about iFreedom Direct and the FHA Streamline loan program visit http://www.ifreedomdirect.com/fha-streamline-refinance.