Economists at New York University and the New York Federal Reserve estimate that the FHA’s mortgage delinquency rate for homes that are at least 115% underwater — they owe 15% more than their property is worth — is at 14% of the total loans underwritten.  The FHA puts that figure at 6% according to an article in Friday’s Wall Street Journal (“Mortgage Insurer’s Risk Criticized” 2/6/2010).

It’s an old story: figures don’t lie but economists can disagree.

The article also mentions the FHA’s “streamline” refinancing program which allows borrowers current on their loans to refinance at lower rates even if the value of the loan equals or exceeds the value of the property.  Such loans accounted for more than 20% of all FHA backed loans last year.

For owners who are current — even if underwater — it’s an opportunity to take advantage of interest rates that haven’t been this low since 2003.

Property Tax Protest is committed to helping its clients save money long term by reducing their current taxable values.  Refinancing under the FHA’s “streamline” program is another way to accomplish the same thing.