FHA Streamline Refinance - An Easier Way for Homeowners to
Refinance
By Joseph Hendizadeh
The FHA Streamline refinance
provides individuals with an easy way to refinance their home. Certain
stipulations must be adhered to, but for those who qualify for this
process, it is the best route to take. The streamline process allows for
a mortgage to be refinanced quickly and with less expense than a
traditional mortgage refinancing. The FHA has permitted the use of a
streamline refinance on insured mortgages since the 1980's and yet today
many people do not realize what this can offer to them.
What Is It?
In an
FHA Streamline Refinance, the
documentation and underwriting that is needed to refinance the loan is
reduced significantly.
This allows the process to be faster and it
allows people to move from one loan into another without the hassles
usually attributed to the process. It is important to note that there
are some costs involved in the process, but they are generally much
lower than the costs traditionally attributed to the process of
refinancing.
Basic
Requirements
In order to qualify for the
FHA Streamline Refinance, individuals must meet specific criteria.
1. The mortgage you currently have must already be an FHA insured
mortgages. If you are unsure of this, contact your lender directly and
ask if your mortgage is an FHA loan. This simply means that the FHA is
insuring the loan by the lender to reduce the amount of risk.
2. In order to use an FHA Streamline Refinance, the mortgage you
currently have must be current. If your mortgage is currently
delinquent, the lenders may offer solutions to help you to get caught up
on the loan payments prior to agreeing to a refinance of this type.
3. No cash may be taken out of the mortgage that is refinanced. If you
wish to pull equity out of your home loan, you will need to use another
type of refinance loan to accomplish this.
4. The goal of this refinance should be to reduce your monthly principal
and interest payments.
As you can see, the
requirements for obtaining an FHA Streamline Refinance are quite low.
Most lenders are happy to allow you to refinance, especially if it would
make paying your loan easier for you.
Why Refinance?
There are several reasons to consider the
benefit of using this refinance process. You may qualify for a loan with
a lower interest rate or better terms. This may allow to have a much
lower monthly payment. With interest rates as low as they currently are,
it is a good time to consider refinancing if your interest rate is
currently higher than what is being offered.
Individuals who are interested in an FHA Streamline Refinance can take
full advantage of this service. The process of obtaining this type of
loan is not difficult but it can save you thousands of dollars over the
lifetime of your loan, even if you simply reduce your interest rate by a
percent or less.
Click:
FHA Streamline Refinance
to learn more.
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