FHA Refinances Mostly Replacing Non Dilinquent Conventional Mortgages

FHA Secure enables conventional mortgage borrowers refinance into FHA mortgages and obtain better loan terms. If the conventional mortgage borrower was current with their mortgage payments prior rate increases on adjustable mortgages they can qualify for the FHA secure refinance. If the borrower has trouble making payments and has been delinquent following interest rate increases they still may qualify.


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The data shows that for the quarter ending June 2008, FHA endorsed roughly $26 billion of FHA refinance mortgages. Nearly $20 billion (76%) of that total was to refinance conventional mortgages for borrowers who were current on their loans. $6 billion (23%) refinance mortgages replaced existing FHA mortgages with new FHA mortgages. The remainder (1%) refinanced existing conventional mortgages having delinqencies into new FHA mortgages. There were 146, 436 mortgages endorsed in the period. The average mortgage amount of these refinance mortgages was $177,000.