Are you a homeowner stuck with a high-interest rate loan? Many options are available to help homeowners lower the cost of interest and lower the payment on their mortgage. Mortgage loans are available to homeowners with existing loans such as FHA and VA. Refinancing your home will help you get better mortgage terms without the long qualification process. Streamlining refinancing is easy as 1, 2, 3!
Streamline Loans are Lenient
Streamline loans are more lenient than the traditional loans requiring credit scoring, appraisals, and income and asset verification. When qualifying for a streamline refinance your mortgage must be current, and there must be a benefit to refinancing (reduced interest rate or savings from changing loan terms). You won’t be able to refinance and get cashback. In most situations, the loan can’t exceed the original loan amount. Basically, you will be refinancing to gain better terms and rates; you can keep the existing term or extend it for 30 years.
Pay attention to the total finance charges over the life of the loan. You might reduce your monthly mortgage, but you could also be restarting your 30-year term. Choosing your term is important and will be based on the goal of refinancing; saving on the interest alone might lower your payment enough to decide to keep the original terms of your loan.
Keep in mind if you have FHA, the FHA Insurance Premium will not go away. If you have a VA IRRRL loan, the mortgage insurance is waived.
Streamline loans are easy and will save you money over the life of your loan. Call your local banker or current mortgage holder to inquire more about how you can refinance and save thousands of dollars.
Compare your options before borrowing or refinancing.
Advantages of FHA Streamline Loan:
- No Appraisal required
- Easier to Qualify
- Refinancing to lower interest rate saving thousands over the life of the loan
- No documentation of income or assets is required
- Lower mortgage insurance fees could be available
- Faster Closing
Disadvantages of FHA Streamline Loan:
- Closing Cost
- FHA Insurance Premium could be higher
- Mortgage Insurance is due at closing, currently 1.75%. It can be included in your loan but increased your balance.
The goal of streamline refinance is to have a net benefit to you as the homeowner. The Federal Housing Administration (FHA) offers many benefits and makes homeownership more affordable.
So, go ahead and get started! Research all your options and Good Luck!