If you are an FHA mortgage borrower you may be eligible for new lower rates that started last year on January 25, 2016. FHA is made a change that will allow borrowers to use FHA streamline mortgage refinance options that lowers the annual rates! There will be a point reduction on the annual Mortgage Premium rate of 0.50.
The FHA streamline refinance program is a relatively quick low expense process. Many FHA homeowners consider this approach because it can reduce their Mortgage Interest Premiums (MIP) without too much documentation. This makes the program quicker and less expensive.
What is a Streamline Refinance?
Streamline refers to the amount of documentation and underwriting the lender has to complete in order to be granted the refinance. This lessons the normal requirements down to the basics, which means less paperwork and time waiting for the benefits to begin.
FHA is even more accessible than before
The Federal Home Administration has become and even bigger deal with the new quick and easy streamline refinance option. They reduced the annual MIP’s by as much as 0.50% of existing balances in FHA loan programs.
Some of the Benefits of doing the Streamline Refinance may be exactly what you are looking for in a refinance option that you can’t find anywhere else. Here are some of the advantages of streamlining your FHA loan:
Often there is no appraisal needed
Underwater homes are eligible
New low rates
No proof of income needed
Closing times is much sorter
A streamline could result in a in a reduction on MIP
A refund that is a scale that decreases over time should end up saving one years mortgage payment.
Who Qualifies for FHA Streamline Refinance
While you must already be a FHA lender there are not too many requirements for the streamline refinance, much like the FHA loan it’s self.
FHA streamline Rates
The rates of the streamline are going to vary based on you location and the time of year, as they can change daily. To find a quote in your area click here http://www.blownmortgage.com/rates/?etty=err&errorcode=4
FHA Streamline Appraisal Requirements
There are two options for the Streamline refinance, one with an appraisal and one without – Giving people who owe more the option to move forward with a refinance without having to deal with a loan modification.
Credit Score Requirements
While there is still a Credit Score minimums with Streamline Refinance if varies from lender to lender. However this should look similar to the requirements needed for the FHA loan in the first place, so as long as your credit score has not dropped since you should be fine.
If you don’t know your credit score you can ask your lender to get you a copy of your credit report.
If you are currently a FHA loan holder you may qualify for a streamline refinance. Your interest rate could be higher than the current rate that is available for FHA loan holders.
Do you research and be sure to shop around when looking for a program and a lender for this refinance.