[ by Annie Johnson ]
A program that is available to borrowers who currently have an FHA loan is the FHA streamline refinance. This is a benefit that sets the FHA home loan program apart from most other types of mortgages. The FHA streamline refinance has been around since the 1980s as a way to help FHA borrowers take advantage of market changes without having to go through the hassle of a complete refinance.
Does my FHA mortgage qualify for a streamline refinance?
In order for a homeowner to take advantage of an FHA streamline refinance, certain criteria must be met. To qualify for the FHA streamline refinance, the mortgage that is to be refinanced must be FHA insured already and the mortgage must be current. The FHA streamline refinance must act to lower the borrower's monthly principal and interest payments or to switch the loan from an adjustable interest rate to a fixed interest rate. With an FHA streamline refinance, no cash can be taken out on the mortgage.
FHA Streamline Refinance Details
FHA streamline refinances are aptly named because they allow homeowners to refinance their mortgages by using a streamlined or simplified process. The FHA streamline refinance allows the borrower to refinance their mortgage with reduced documentation requirements for income, credit, and employment information. Although the costs of an FHA streamline refinance are reduced, this is not a no cost loan. A borrower may have the option to eliminate out of pocket costs in exchange for a higher rate rate than they actually qualify for on their FHA streamline refinance. The costs are still present but the lender will pay them instead of the borrower in exchange for the higher interest rate.
With FHA interest rates lower than they have been in many years, it may be advantageous to use the FHA streamline refinance program. To see how much you can save or to simply speak with an FHA streamline refinance specialist, call (877)264-4736 today!
11:55 AM
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