Many home underwater homeowners with FHA mortgages have not taken advantage of the FHA streamline refinance because their monthly mortgage insurance payment (PMI) would significantly increase due to HUD increasing the premium numerous times on FHA loans in the last 2 years. Starting today many of these folks will receive a lower monthly mortgage insurance payment on FHA streamline refinances. HUD has reduced the up front and monthly premium on streamline refinances of FHA loans endorsed by FHA prior to June 1, 2009. This may mean an FHA streamline refinance will help thousands of home owners refinance and reduce their monthly mortgage payment, even if they have lost equity
