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April 16, 2011 – Effective April 14, 2011 HUD announced that dropping from a 30 to a 15 year note is no longer considered a Net Tangible Benefit and it will not allow funding unless there is a drop of at least 5% in payment (P&I and MI). San Antonio, Texas FHA Mortgage Expert Samuel Morales of www.YourLoanOfficer4Life.com and www.streamlinefha.org says,

“Many people want to lower the term of their FHA mortgage loans, obviously if you are going from a 30 year to a 15 year mortgage your payment is not going to go down even if your interest rate is dropping significantly. What this means is that regardless of your credit or ratios HUD is blocking you from reducing the term on your FHA mortgage. For now you’ll just have to pay additional funds to your principle balance in order to reduce your term. In all honesty, this makes more sense in many situations”.

This is just one of the many recent changes in the mortgage industry meant to lower the risk to the primary and secondary investors within the mortgage industry.

About Samuel Morales:

Samuel Morales has been a Texas Loan Officer and Broker/Banker for the past nine years and runs www.yourloanofficer4life.com along with several sister sites.

(Note from Samuel – The above mentioned changes are just some of the changes HUD has made to their Streamline Refinance programs. To learn more about how these changes will impact your refinance please email me at the address listed below)

Samuel Morales

Samuel@yourloanofficer4life.com

www.mortgageratenotifier.com

www.streamlinefha.org

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