FHA Streamline Refinance – Finally, A Simple Way to Refinance Your Home Mortgage

Must Read

What Is the Difference Between Reinstatement Vs Modification of a Home Loan or Mortgage?

If your mortgage lender has sent you a letter demanding that you pay all of your back payments, as...

FHA Short Refinance Opportunity for Underwater Homeowners

A review of the FHA updated guidelines to the short refinance modification for struggling homeowners who are current but...

Three layers of computing

At a basic level when you use a personal computer you interact with three layers of computing. First, at...

The Home Refinance RushIf you’re like many smart homeowners today, you’re thinking of refinancing to a lower rate to take advantage of some of the most attractive loan rates in decades.It’s true, rates are being kept artificially low with government incentives. And they are guaranteed to rise when the economy goes into solid recovery. So financially savvy mortgage holders are acting now to shore up their debt by cashing in on today’s low rates.The bottom line is that refinancing in today’s market is a smart move that will pay off for years to come.FHA, Refinancing, and Economic RecoveryWe all know the economy is lagging. Because our economy is so dependent on the health of the housing market, part of the government’s complex recovery plan includes fortifying home values. Naturally, the government wants homeowners to stay in their homes. For many people this requires refinancing to a lower payment.Where does FHA come in? An FHA home loan is federally insured. To a bank, that means it’s a safer asset than many other types of home loans. Because of the stability of the FHA loan, and because the government wants to make refinancing as easy as possible for citizens, certain requirements have been relaxed to encourage refinancing and to provide for quicker qualification.In the mortgage industry the new, faster process is called the FHA Streamline.Good News for FHA Loan HoldersWith an FHA Streamline refinance, homeowners are often allowed to skip the appraisal process, one of the biggest snags for homeowners trying to refinance. In some cases they may even be able to skip the income verification.And all types of current FHA loans qualify for the program. This means 30- and 15-year fixed-rate FHA loans, as well as all ARM FHA loans.Do You Have an FHA Loan?Maybe you’re not sure if you are currently in an FHA Loan. To verify, you’ll need to locate an FHA case number associated with your loan. The case number is usually a 10-digit number, but it can be as many as 13 digits.Here are some places to look for verification of your FHA loan case number:

Your mortgage statement: On your mortgage statement there should be a breakdown of escrow and your next payout estimate. Often you can find your FHA case number there.

Your loan note: Look on the upper right corner for the case number.

Your home loan appraisal: If you have a copy of your home’s last appraisal, look on the cover page. The case number should be on the upper margin of the first page of the report.
Do You Qualify for an FHA Streamline?If you’ve determined that you are currently in an FHA insured loan, you may be the perfect candidate for an FHA Streamline. But what else would you need to start rolling toward a refi?According to the Housing and Urban Development website, the basic requirements of a FHA Streamline refinance are:
The mortgage to be refinanced must already be FHA insured.
The mortgage to be refinanced should be current (not delinquent).
The refinance is to result in a lowering of the borrower’s monthly principal and interest payments.
No cash may be taken out on mortgages refinanced using the streamline refinance process.
If you think these guidelines describe your situation, it’s probably a good idea to speak to a home loan expert or mortgage broker to find out how refinancing can improve your personal finances. Considering the current interest rates, it’s likely refinancing can enhance your bottom line.A simple example is to look at the numbers on a $200k home loan. At 7% interest, that’s a monthly payment of $1,330. Refinancing to a rate of 5% would lower the monthly payment to $1,074. That’s a monthly savings of $256, and a yearly savings of $3,072. Over a 30-year loan, that’s a savings of over $92,000!The truth is, the cost of borrowing may never be lower in our lifetime. Qualifying for a refinance now could mean hundreds of dollars per month back in the pockets of homeowners. And with the FHA streamline simplifying the process for millions of qualified homeowners, it could be the most painless savings ever.


Please enter your comment!
Please enter your name here

Latest News

Top 10 Provinces of Thailand Not to be missed for Travel

10 SuratthaniThe source of the proverbial Chaiya salted egg. Surat Thani is a province with many attractions,...

Underlight As Accent, For Power and The Main Light for Photography

Underlighting, in which fill or accent light comes from under the topic, is not widely used technique in the traditional Portraits, even though it will have...

How To Fix Overexposure As A Creative Tool, The Complete Guide

As an creative tool, overexposure is sort of underrated. What I’m close to propose could be a deliberate and well thought out technique for...

7D Mark II is Canon’s best DSLR cameras without full-frame sensor.

The expected long-awaited Canon EOS 7D Mark II are shipping in November for $ 1,799 without a lens. With a higher price tag, you...

Low key photography and How to isolate your subject.

Low key photography doesn’t depend on underexposure to make its point; the key to low key is that the majority of tones, even correctly...

More Articles Like This