If people were questioning whether we’re in a buyer’s market now or not, it’s a pretty sure thing now.  With all the changes that have come from above regarding mortgages, short sales and financing, we’re seeing a big change in the numbers of buyers coming forward.

During the 3^rd week of June, the demand for FHA refinancing more than doubled last week, following deep reductions in the fees that are charged to the borrower in search of better rates.

Tack that on with the changes to make short sales process faster and we’re seeing a demand increase for housing in the Metro-Detroit area.  The issue is that the number of available homes is starting to decline.  As the crop of foreclosures dries up, the selection is starting to dwindle.

Despite the sharp increase in refinancing with a Michigan mortgage lender, the total refinance activity only rose a little more than 1%.

As of June 1, the FHA cut the one-time mortgage insurance premium charged on streamlined refinances to 0.01 percent of the loan amount, down from 1 percent previously, and reduced the annual insurance premium to 0.55 percent, down from 1 percent.

A streamlined refinance is a simpler form of refinancing a mortgage, in which many of the usual requirements are bypasses.  Items such as an appraisal and income verification are not required.  Virtually any borrower can qualify provided they already have an FHA mortgage and remain current on their mortgage payments.

Making Life Better At Home

Refinancing is an extremely smart move, especially for homeowners who purchased their property during times of higher interest.  With falling home prices, a refinance under the new FHA refi rates can significantly reduce the amount of money paid out on your home in the long run.

That extra money can be used in a variety of ways, including improvements that ultimately improve the equity of your home.  That kind of boost in equity could be just what you need to move your home value back up toward a more profitable position.

Find out if you’re eligible for a refinance on your home, contact your Michigan mortgage lender today!