FHA Streamline Refinance Program – FHA Mortgage Refinancing Advantages!
In the early 1980’s, the FHA Streamline Refinance Program first made an appearance on the mortgage stage. Since its emergence, many FHA home owners have benefited from the program. It is again gaining popularity in the struggling economy. If you are looking for ways to save money and reduced your monthly mortgage payments then you need to consider FHA mortgage refinancing.
The FHA Streamline Refinance Program has four main qualifying factors.
1. First, the mortgage that is to be refinanced must already be insured by the FHA.
2. Secondly, the mortgage that is to be refinanced must be a current mortgage, it can not be a delinquent mortgage.
3. Thirdly, the refinance must result in lowering the borrower’s monthly payment and interest rate.
4. The final qualifying factor is that mortgages refinanced through the FHA Streamline Refinance Program can not have any cash taken out of them.
There are multiple advantages to the FHA Streamline Refinance Program.
The fact that the program is a “streamline” refinance brings forth advantages. With a streamline refinance, the borrower does not credit-qualify or document income or employment. All the borrower needs is a valid social security number.
The lender can often times lower the borrower’s interest rate without even ordering an appraisal. Without needing an appraisal, this can cut up to three weeks off the borrower’s waiting time and cut down on the amount of paperwork and underwriting required by the lender, both resulting in a quicker refinance and more money saved for the borrower.
Since the lender isn’t required to do an income verification, order an appraisal, and the fact that the FHA Streamline Refinance Program cuts out much underwriting for the lender, the borrower’s application often doesn’t need to be completed in person. Rather the borrower can save time through completing the application over the phone or through the internet.
Along with the previous mentioned benefits, after the FHA mortgage refinancing is complete, there are continued advantages for the borrower.
Those with good credit and little or no debt benefit even more from the FHA Streamline Refinance Program. Once their monthly payment and interest rate have been lowered, this allows the borrower to have money left over. This money can be used towards paying the house off in a more timely manor, completing improvements to the home that in turn increase the homes value, or other personal expenses.
What do you do if you don’t have good credit? We all do not have good credit. If your credit is less than perfect you still may be able to do a Poor Credit Refinance. You can get more information on Poor Credit Refinance by clicking on the link at the bottom of this article.
FHA mortgage refinancing has many advantages that greatly benefit the borrower. And with the FHA Streamline Refinance Program it could lower your monthly mortgage payments, save you money while being quick and easy to do!