When interest rates are low, people who are currently in an FHA loan see all over the news something about the FHA streamline mortgage refinance that is supposed to save them money.
Will an FHA streamline refinance save you money?
It might – if you can lower your interest rate enough.
What Are The Streamline Rates?
Just like interest rates from other mortgage products, the FHA streamline refinance rates change every day. To see an average of what interest rates are being quoted today, type your zip code in over on the right hand side to see what lenders are offering in your area.
Are Credit Scores Required?
Many people ask if FHA requires a minimum credit score when doing an FHA streamline refinance and the short answer is “yes” but it will vary by lender. Lenders may carry different minimum credit score requirements for the FHA streamline program.
If you aren’t sure what your credit score is exactly, be sure to ask your lender to help you get a copy of your credit report.
FHA Streamline Refinance Qualifications
The FHA streamline program is designed to allow borrowers that are currently in an FHA loan to take advantage of lower interest rates when they are available. Not everyone qualifies for the FHA streamline program, there are 3 main criteria to qualify:
- You must live in the house
- You can’t have more than 2 30-day late payments on your mortgage in the last 12 months
- You can’t participate in the FHA streamline program unless it financially benefits you. There are costs involved, and the benefits must outweigh the costs.
Is An Appraisal Required?
There are two types of FHA streamline programs – the “FHA streamline with appraisal” and the FHA streamline without appraisal” programs. The FHA streamline without appraisal program may be an ideal solution for people who currently owe more than their home is worth and don’t want to hassle with a loan modification.
Get The Right Mortgage
If you currently have an FHA loan that you have got in the last few years, chances are high that you are at a higher interest rate than is currently available. When you go to look at what your refinance options are, chances are if you just want to lower your mortgage payment and not get any cash out then the FHA streamline program is right for you and then the next step to take is to start shopping lenders. There are many lenders who can help you and the key is to do as much homework as you possibly can about what types of questions to ask lenders and then start to work with the one that you like the best.
To find out if the FHA streamline program can help you lower your monthly payment and put you in a better overall financial situation, be sure to shop around and speak with a loan officer at a lender who specializes in the FHA programs. When you find the right loan officer who has the right knowledge, the next step is to get your application completed and turned in before rates go back up and it no longer makes sense to refinance.
Get free FHA streamline quotes from lenders now – when banks compete, you win!
