Mortgage interest rates are low and refinancing can save you hundreds of dollars every month on your home loan payment. An FHA approved lender can help you to obtain an FHA Streamline Refinance with less documentation that a typical refinance. This makes your life easier, is a faster process, and saves you money. Since the FHA already has your existing mortgage in their portfolio, they are familiar with your pay history. They already approved you once so offering the streamline refinance program only lessons the risk of them giving you a loan. After all the less money you pay monthly, the more likely you are to pay on time.
Home loan interest rates are at historic lows but they have been steadily creeping up during 2013. If you are interested in saving money now is the time to refinance.
FHA Streamline Refinance Steps
1. Confirm that you have an existing FHA loan. If your loan is held by Fannie Mae or Freddie Mac there are other refinance options available to you.
2. Contact an FHA approved lender to begin the application. Not all lenders are approved with the FHA so it is important to ask before proceeding.
3. Make sure that you have paid your mortgage on time over the past three months. If you have had a late payment wait until you have three months of on time payment history. This program only allows you to have one late mortgage payment within the past three months.
4. Understand why you want to refinance. In order to qualify the refinance must give you a clear benefit. This can be in the form of lowering your interest rate, reducing your monthly payment, or taking an adjustable rate mortgage and making it a fixed mortgage loan.
Benefits of an FHA Streamline Refinance
1. No appraisal. The FHA doesn’t care about your homes value. You could owe significantly more than your home is worth and still qualify. The goal is to make sure you can make your monthly mortgage payment. Reducing your interest rate will help accomplish this, even if you owe more than your home is worth.
2. No income verification. The FHA does not verify your employment or your income. This is extremely valuable for home owners that may have had reduced hours at work or gone through periods of unemployment. Many lenders need to prove a solid two year work history. This FHA program doesn’t care as long as you have been making on time payments.
3. Low credit scores are okay. If you have a low credit score and have been turned down in the past, the FHA Streamline Refinance is the loan program you have been looking for. The FHA uses your past payment history as a way to determine if you are likely to keep making on time payments in the future. This approach makes your actual credit score of little relevance.
If you have an existing FHA home loan contact an FHA approved lender today. This is a fantastic way to reduce your monthly mortgage payment and save money. Rather than paying towards a high interest rate home loan, you could be spending more money on summer vacation. Interest rates are rising so get started today.
