Homeowners that financed their purchases through the Federal Housing Administration will be able to more easily refinance their mortgages with lower rates under a new plan announced by President Obama.
Starting in June, the FHA will lower its upfront mortgage insurance costs from 1 percent of the loan balance to 0.01 percent if the refinance through the new streamlined program. High insurance premiums have kept many homeowners from taking advantage of the lower rates. Only homeowners that purchased before June 1, 2009 are eligible.
Unlike many other aspects of the administration's housing recovery plan, this does not require congressional approval.