Dropping mortgage interest rates

FRESNO, Calif. (KFSN) -- A move by the federal housing authority to help first time homebuyers could also help homeowners save money by refinancing.

First time home buyers and homeowners refinancing their FHA loans have noticed a reduction in what's called monthly mortgage insurance.

Loan Officer Paul Salazar of principle home loans says the FHA reduced its monthly mortgage factor by half a point. As a result homeowners can save.

Salazar said, "It is a frenzy right now because of the fact right now that clients that have FHA loans at this time can actually get anywhere from $80 to $100 off their mortgage payment every month."

Salazar urges people who have FHA home loans to contact their lender to see if they can save money by refinancing.

"This is called an FHA refinance streamline," said Salazar. "We don't need income documentation. Basically it's your note, your current mortgage statement, your insurance and two months of your bank statements."

And with mortgage rates dipping for a fourth straight week -- It may also be a good time to see if it makes sense to refinance your home. The average mortgage rate stands at 3.63%.