If you have a mortgage you understand what a big monetary commitment it is, and as life and continues other expenses begin to accumulate. Bill’s, children’s education, home improvements, and many other necessary expenses become unmanageable. We want you to know that if you have an FHA home loan there are mortgage options out there for you that can help you save money.
FHA Streamline Refinance
The FHA Streamline Refinance is a fast, simple way to refinance your home respective to today’s mortgage rates. The defining point of the FHA Streamline is that you don’t need an appraisal on your home, FHA allows you to use the original purchase price as the currently value. This protects properties that are underwater on their mortgage because there are no new costs added in the refinance process.
A refinance of your current loan is a great way to re-budget your mortgage, and in most cases lower your rates. There is a relatively new program called the Streamline Refinance. Streamline refers the the relatively easy program to refinance your home. A streamline refinance is made to get you through the process as quickly as possible with a little paperwork as possible for both you and your lender saving you both time, money, and stress. This streamlined option allows you to reduce the interest rate on your home loan quickly and oftentimes without the need of an appraisal.
FHA Streamline Refinance Benefits
One of the major positives about an FHA Streamline Refinance is that there are not many qualifications.The biggest most important qualification is that you original home loans MUST be a FHA loan. If you are not in good standing on your loan you may have some problems obtaining a refinance, however they may still be options. If you are in good standing than the refinance must lower your monthly interest payments. Streamline will reduce your monthly payments often times saving at least one year’s mortgage payments.
This options does not allow for cash back options, but can still save you a significant amount on your mortgage. This options behaves much like most other loan products except for the no appraisal bonus. It will refinance as a fixed rate or adjustable mortgage in a term from 15-30 years.
Considering FHA Streamline Refinance
This refinance program will work for people who are in good financial standing and no significant debt, giving you little extra money each month that can be put to good use elsewhere.If you do not have a FHA loan it is still possible to refinance a conventional loan with FHA. There are a few more requirements and processes to go through, but you can still save in the end.
With a conventional loan you will need to apply for the refinance with employment verification, pass a credit check, perform debt ratio requirements and other considerations before being approved. These steps can pay off with a FHA refinance loan, you may be offered better interest rates and lower mortgage payments.