FHA Lowers Refinancing Fees

Washington, DC, March 7, 2012 -- Some homeowners with federally insured mortgages will be able to refinance for lower interest rates more easily and inexpensively under a new plan from the Obama administration.

The administration announced Tuesday that the Federal Housing Administration will cut upfront fees for refinancing loans it already insures.

An estimated 2 to 3 million borrowers could take advantage of the savings, which could reduce mortgage payments for the typical FHA borrower by about a thousand dollars a year, according to the administration.

Servicemen who were wrongfully foreclosed on may also get relief. Lenders and servicers will be required to review the cases of every service member foreclosed upon since 2006.