Replies (1)
- wayne lancaster, "funds2"
- Contributions:1880
Oscar,
It appears you left out a very important aspect of a Streamline FHA refi..... an appraisal is required if closing cost are rolled into the new loan.With an appraisal the new loan can be up to 97.75% (plus UFMIP) of the appraised value! Majority of homeowners do need to roll in closing cost particularly with the cost of pre paids/escrows that have to be re-established. Appraisal can only be avoided if loan balance only is refinanced. This program is one of many benefits an FHA loan offers vs conventional loan. Probably not given much thought until 2-3 yrs. ago when home values began to be an issue. Assumability (with qualifying) could be a huge benefit of an FHA loan in the future if rates go above 6% again.
It appears you left out a very important aspect of a Streamline FHA refi..... an appraisal is required if closing cost are rolled into the new loan.With an appraisal the new loan can be up to 97.75% (plus UFMIP) of the appraised value! Majority of homeowners do need to roll in closing cost particularly with the cost of pre paids/escrows that have to be re-established. Appraisal can only be avoided if loan balance only is refinanced. This program is one of many benefits an FHA loan offers vs conventional loan. Probably not given much thought until 2-3 yrs. ago when home values began to be an issue. Assumability (with qualifying) could be a huge benefit of an FHA loan in the future if rates go above 6% again.
FHA to FHA Streamline Refinance
FHA to FHA Streamline Refinancing is a very popular refinancing option for many homeowners who currently have a Federal Housing Administration Insured Home Loan. We've all heard the news reports that interest rates are at an all time low, and that current homeowners should take advantage of these low rates by refinancing there existing mortgage for a lower rate in return saving money each month on there mortgage payment. Unfortunately, many people have believe that they are so far "Up Side Down" on there current mortgage that NO lender will refinance there home because of the lack of equity. This may hold true for homeowners with a Conventional mortgage but not for an FHA mortgage.
Believe it or not, there is a program that has been place sine the 1980's called an FHA Streamline Refinance. The reason its called a Streamlined Refinance is because it allows the homeowner to have there interest rate lowered in order to take advantage of current low rates without the hassle of providing the normal paper work required on a straight forward regular purchase home loan application. This program has the potential of saving a homeowner a $100 per month to a few hundred dollars per month depending on there current interest rate and how long they've had there current mortgage for. The savings potential are great especially in our current economic environment for homeowners.
Below, I have listed a few of the basic requirements for FHA Streamlined Refinance.
I hope this will shed some light on options for homeowners to save money each month on there existing FHA mortgages.
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