President Barack Obama today announced the changes to the Federal Housing Administration (FHA) streamlined refinancings.

Under the brand new program, borrowers whose loans were originated prior to June 1, 2009 will pay an annual mortgage insurance premium (MIP) of just 55 basis point after refinancing, which is only half of the current rate of 110 basis points. The upfront MIP, which will soon be 175 basis points for all other borrowers, will be set at only one basis point for these borrowers.

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