You have an FHA loan that you want to refinance in order to get a lower payment. The only problem is that you have bad credit. How will you ever refinance? Get Matched with a Lender, Click Here. You can use one trick that the FHA provides. It’s called the FHA streamline loan and it allows you to refinance your FHA loan without verification of your credit. You can even have poor credit and still refinance your loan. How Does the FHA Streamline Loan Work? Only current FHA loan holders can … [Read more...]
Is a Mortgage Recast a Better Option Than a Refinance?
If you want to restructure your loan, you have a few options. You can recast, refinance, or just pay down your loan. Two of these options, the mortgage recast and refinance, require the help of a lender. The third option – paying down your loan, can be done on your own. Get Matched with a Lender, Click Here. We explore all three options for you below. What is a Mortgage Recast? You may have never heard of the mortgage recast. That’s because most people refinance; it’s all they know. The … [Read more...]
What to Consider Before you Refinance Your Mortgage
Refinancing your mortgage might seem like a great idea, especially if you can get a lower rate. But, before you do it, consider the following factors. Understanding the full implication of a refinance will help you make the better decision. Compare Offers from Several Mortgage Lenders. Is it Worth It? The most important question to ask yourself is whether or not the refinance is worth it. In other words, what is your break-even point? This is when you start reaping the savings after taking … [Read more...]
Differences Between FHA Streamline and FHA Short Refinance
The FHA offers several programs that many borrowers don’t know about. The two most commonly misunderstood are the FHA Streamline and the FHA Short Refinance. Both programs have many benefits. But, they each pertain to a different audience. We’ll discuss each program below and how you can qualify for them. What is the FHA Streamline? The FHA Streamline refinance is for current FHA loan customers. It offers these homeowners the ability to refinance their current FHA loan. Homeowners don’t need a … [Read more...]
Refinance an FHA Loan to a Conventional Loan – Should You?
If you were like many other first-time homebuyers, you took out an FHA loan. It helped you get a loan with a small down payment. It also had flexible guidelines. Now that you have owned your home for a while, though, you may be ready for a different loan. If you want to get rid of the mortgage insurance, the only way to do it is with a conventional mortgage. How do you know when the time is right? What is Your LTV? The best place to start is with your LTV. This stands for loan-to-value ratio. … [Read more...]
How Soon Can You Refinance an FHA Loan?
Refinancing an FHA loan can be done at any time. The FHA doesn’t have regulations regarding how long you must have the loan first. However, a lender may have some specific requirements. The most common requirement is to have the loan for at least 6 months. They call this seasoning. It gives the lender a chance to see that you can make the payments on time. It also depends on the type of loan you refinance into as you have choices. Here we discuss your options and what you need to know. FHA … [Read more...]
Best Loan Options for a Quick Refinance
You can refinance in a matter of a couple of weeks if you play your cards right. If you have a government-backed loan, they each offer streamline programs. These programs require minimal documentation and no appraisal. If you provide everything the lender needs right away, you can usually get your loan closed in a week or two. FHA Streamline Offers a Quick Refinance If you currently have an FHA Streamline loan, you may be eligible for the FHA Streamline. You may qualify if you made your last … [Read more...]
Avoid These Common Refinancing Traps
Refinancing your home might seem like a great idea. You hear you can save money and/or lower your rate. What do you have to lose? Unfortunately, there is plenty at risk. Before you jump in and refinance, understand the most common traps. Refinancing isn’t always the best idea. Avoid these common issues and you can protect one of the largest investments in your life. Using All of Your Equity You have equity so you want to use it. Who wouldn’t? But should you? The real estate industry is … [Read more...]
Is an FHA Cash-Out Refinance Possible?
We all know that it is possible to refinance through FHA. What we’d like to know is if a cash-out refinance is allowed. Is it possible to turn a part of your equity into cash through FHA refinance? There are two types of FHA Refinance: through (1) FHA Streamline Refinance, and through (2) FHA Cash-out Refinance. So, the answer is a definite yes. FHA Streamline Refinance is HUD’s way to make refinancing quicker by waiving off certain documentation requirements. This program helps decrease the … [Read more...]
No FHA MIP Reduction in 2017
Not long after being sworn into office, President Trump undid the impending FHA premium cut.The reduction would have slashed 0.25% on the annual fee. The suspension was signed by the president right after his inauguration. The cut was announced by the outgoing HUD secretary Julian Castro earlier in January. This would mean around $500 savings from homes which cost $185,000. While that doesn’t sound like a huge deal of money, savings is still savings and every penny counts. This … [Read more...]