FHA mortgage refinance rates are somewhat lower than other types of mortgages and as such can be beneficial in helping debtors by allowing them to refinance at a lower interest rate. It is also possible to reduce the costs that are associated with refinancing the mortgage.

These changes were made effective for borrowers who had entered into FHA mortgages prior to June 1, 2009. This decision provided a way for 2,000-3,000 clients to take advantage of the huge financial savings. It was projected these changes could reduce mortgage payments for the traditional FHA customer by $1,000 or more a year.

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Any customers who took advantage of the new rates had to pay an advance fee for insurance that was equal to 0.1% of the mortgage amount and an annual fee of 0.55%. These new fees went a long way toward reducing FHA refinance mortgage rates. This program meant debtors paying a 3.5% deposit on a residence on April 1 of that year would pay a 1.75% upfront fee in addition to a 1.25% annual fee, a change that was put into place just a week prior to the reduction.

Experts believed in spite of some increases, costs associated with FHA refinance mortgage rates would be very beneficial for housing and the economy since it would reduce the number of foreclosures and maximize the income of individual homeowners.

When this new policy was implemented, it was simpler for banks and mortgage companies to refinance loans. Some lenders had previously chosen not to refinance FHA loans because of the fact many of them were closed during a period when default fees were high.

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Since this new policy stated the FHA would not hold mortgages against them that were refinanced, it was believed those creditors would be more willing to refinance loans from borrowers that were higher credit risks. Previously they had not been accepting applicants who did not meet a certain credit rating.

The implementation of HARP (Home Affordable Refinance Program) allowed homeowners to refinance mortgages that were backed by Fannie Mae or Freddie Mac even if they were upside down in their mortgages. This then freed up cash homeowners could used to invest in other things including consumer products.

In addition to changing current (at the time) FHA refinance mortgage rates, steps were included that provided relief to service members who had suffered from monetary losses because of the depressed real estate market. This included all cases of service members back to 2006. Those members would then be paid back for the equity they forfeited and could even receive a level fee of $116,785.

www.Real-Estate-Yogi.com can provide you with help on many of the other programs that may be available for those who are struggling financially because of the economy and the depressed real estate market. Real-Estate-Yogi, an online marketing service, reminds consumers if a deal seems too good to be true, it usually is, so use some common sense and avoid scams.