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.