The FHA said the upfront portion of the mortgage insurance premium (UFMIP) paid is not refundable. But there is an exception to this rule: when you refinance into another FHA mortgage. This UFMIP refund is very beneficial because it reduces the UFMIP on your new loan, lowering your base loan amount and your monthly payment in turn. Get help with your mortgage refinance.» UFMIP Refund When Refinancing If you are an existing FHA homeowner and refinancing into another FHA loan through a … [Read more...]
Defining Net Tangible Benefit in FHA Streamline Refinances
When you do an FHA streamline refinance, there must be something in it for you. This is called the net tangible benefit which is “a reduced combined rate, a reduced term or a change from an ARM to a fixed rate mortgage that results in a financial benefit to the borrower.” The showing of a net tangible benefit is an important, indispensable element in any FHA streamline refinance. Get in touch with a lender here.» Reduction in Combined Rate For starters, the lender is tasked to determine if … [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...]
FHA Streamline Refinance’s Credit and Non-Credit Qualifying Options
The FHA Streamline Refinance does away with the usual voluminous documentation accompanying any refinancing transaction. And this streamline refinance program comes in two options: credit and non-credit qualifying. Let’s find out about their differences and similarities, and their overall implication to you should you choose either option. Do you qualify for an FHA streamline refinance?» Credit and Non-Credit Qualifying Guidelines Definition Non-Credit Qualifying This option does not … [Read more...]
The Mistakes You Should Avoid When Applying for an FHA Streamline Refinance Loan
Mortgage rates at record lows are encouraging more people to finally take the plunge and buy their first home. According to Freddie Mac, a 30-year fixed mortgage now has an average interest rate of 3.62 percent. A decrease of 0.39 percent from last year. New homebuyers aren’t the only ones jumping up the chance at easy mortgages. Borrowers who are years into their current FHA loans are also looking to refinance them. After putting down a fair amount in installments and with today’s rates, … [Read more...]
Is an FHA Streamline Refinance Loan the Right Choice for You?
Buying a house is a big step. For many, that first home is the realization of a dream. It requires much thought primarily because it involves a lot of money. If you need financing to afford a home, that means making a long-term commitment to pay off the sum you borrowed. For most loan types, that’s a good 30 years down the road. Fortunately, some loan programs administered by federal agencies account for positive changes in a borrower’s financial status. In this article, we’ll be putting the … [Read more...]
Meeting the Requirements of the FHA Streamline Refinance
Refinancing does not always have to mean tons of paperwork and jumping through hoops to qualify. If you currently have an FHA loan and simply want to refinance into a lower interest rate, you can do so with very little work. Does that sound too good to be true? It’s possible with the FHA Streamline Refinance. As the name suggests, this program makes it possible to refinance with just a few requirements to meet, most of which a majority of FHA loan holders will be able to do. If you obtained your … [Read more...]
Poor Credit – You May be Eligible for the FHA Streamline Refinance
If you currently have an FHA loan, it might not matter what your credit is like right now if you want to refinance. Granted, the FHA Streamline Refinance will be your only choice, but if your main goal is to lower your interest rate to make your payment more affordable, this program does just that. The FHA makes it very easy for current FHA customers to refinance simply because it makes the payment more affordable. Basic FHA Streamline Refinance Requirements According to the FHA, you only have … [Read more...]
The Most Common FHA Streamline Refinance Questions
The FHA Streamline Refinance is a great way to lower your monthly payment on your FHA loan. The process, as the name suggests, is very streamlined, requiring very little from you as the borrower. If you obtained your original FHA loan when rates were higher than they are today, it is worth looking into the benefits of this lucrative loan program. Before you do, here are the answers to the most common questions regarding the streamlined process. Do I have to use the same lender? No, you do not … [Read more...]
3 Reasons to Use the FHA Streamline Refinance Program
You decided it is time to refinance because you know that rates are lower and who wouldn’t love a lower payment, right? But how do you know which program to refinance with when you have an FHA loan? You are not restricted to using only the FHA program when you refinance, unless of course, you do not qualify for a conventional loan. But assuming that you qualify for both programs, which one offers the best deal? Generally, the FHA Streamline Refinance Program offers you a large variety of … [Read more...]