Do You have a FHA Loan and Want to Reduce Your Monthly Payments each month? An FHA Streamline Refinance may be the choice for you!
Unlike a conventional refinance where tons of paperwork is required, a FHA streamline refi is quick and has minimum costs.
***Starting June 11, 2012 if you currently have an FHA loan you may qualify for a refinance that will reduce your upfront mortgage premium to only .01 percent and your annual premium of .55 percent!***
Benefits of a FHA Streamline Refinance
- Home Re-Appraisal usually not required
- No income verification, employee verification, or underwriting fee required
- Easily increase or decrease the length of the term of your existing loan
- Take advantage of current low interest rates
- Little or no out-of-pocket costs
- Minimal Paperwork
Many people choose a FHA Streamline Refinance because they can refinance with no out-of-pocket costs. This is offered in two ways: the costs can be covered by the lender in exchange for a slightly higher interest rate, or the costs can be included in the new loan if the property has sufficient equity.
FHA Streamline Requirements
- Your existing home loan must be FHA-insured, current, and in good standing. Good standing means you haven’t missed any monthly payments,
- The borrower must have a seasoned loan – ie, the borrower must have opened the loan at least six (6) months prior to refinancing.
- The Streamline Refinance must lower the borrower’s interest rate, which in turn will lower monthly payments. Usually you can get cash back on a refinance but with an FHA streamline refinance, cash back is not an option for this type of refinance.
Getting an FHA Loan is also one of the most frustrating experiences for a home buyer to endure. It makes shopping for the home, negotiating the price, and the home inspection seem easy for most people.
