800-555-2098
One of the main home financing options available right now is a FHA loan. In fact, in 2009 34.5% of all loans were FHA loans, in 2010 27.7% were FHA loans, and 33% in 2011 so far. With so many FHA loans administered by the Government the last few years FHA mortgage holders need to be aware of the advantages they may have when contemplating a refinance.
One option a FHA loan holder has is to refinance their current FHA loan into another FHA loan. This kind of loan is called a Streamline Refinance. This is a government program that is available to all FHA mortgage holders (some qualification standards still apply-call to see if you are eligible) because they wanted to allow FHA borrower’s the ability to drop their interest rate if rates improved, quickly and with little to no cost.
One of the advantages of this streamlined loan already mentioned above is the cost to complete them. The Streamline Loan guidelines state that your new loan amount can only increase by so much. To help meet and satisfy this guideline, credits are given back to you at closing to help pay for any mortgage related costs. These credits keep your loan size low and close to your current mortgage balance. This obviously turns into a fantastic deal for all potential Streamline Refinance customers. A FHA mortgage holder can even potentially lower their loan size after the appropriate credits are given at close. Again, this program helps save FHA loan holder’s the precious equity they have in their home by utilizing this fantastic mortgage option and still drop their rate and save money. The proverbial win/win situation.
Stayed tuned for part 2 of “Refinancing Your FHA Mortgage”. You can learn about reduced paperwork requirements and also learn how FHA Streamline Refinance’s do not always require an appraisal. See you soon.