What is a FHA Streamline Refinance Loan? Learn how this special refinancing program can speed up the process required of homeowners to refinance below.
Buying a home is no longer as easy as it used to be.
You can understand why buying or refinancing a home is harder these days. This fact is especially true if one starts considering the state of the national and global economy.
In fact, the volatility in the economy has resulted in the purchasing power of the common man going down significantly.
it has become more difficult for first time home buyers, it is also
problematic for people who already have a mortgage on their heads.
This is where government initiatives such as the FHA streamline loan come into play. The FHA streamline loan allows an individual to reduce the rate of interest on his mortgage.
Therefore, if you are already reeling under the financial pressure, then you would benefit by opting for FHA streamline refinancing.
This loan product has always been seen in a positive light since its inception in the early periods of the 1980s. Furthermore, the current economical unpredictability has made these types of loan instruments highly attractive for the common man.
The most obvious benefit of this refinancing option is that it would allow you to reduce the interest rate on your loan, which would relieve the financial pressure you may be currently under. In addition to this, another very important benefit is that it is particularly easy to lessen or increase the term period of the loan.
Finally, it is also important to consider that the whole process for getting FHA streamline refinancing is extremely simple. That is why the word 'streamline' is used. It has minimal paperwork and various bureaucratic hitches are also reduced to negligible levels.
It is also possible for an individual to have an existing FHA loan refinanced without paying a single dime from his pocket. This is made possible with what is known as the no cost FHA streamline loan.
Even though the this no cost program means that you do not pay anything from your pocket, you should note that the closing cost for the whole process will be added to your refinanced loan. This means that while this program is ideal for people in serious financial trouble, others should go for the simple streamline refinance scheme.
Even though taking advantage of this option is quite easy, it is only possible if you meet some basic requirements. The foremost of these prerequisites is the fact that the existing mortgage that you are trying to get refinanced should already be insured by an FHA mortgage.
Another requirement that you would have to meet would be that your existing mortgage is current and not delinquent in nature. Furthermore, FHA also ensures that the intentions for getting the streamline refinance program are clear. They do this by requiring the final principal and interest payments to be lower than what they were before refinancing.
I have an awesome calculator to help you figure your FHA closing costs. Be sure to take some time to explore it.
Do you have questions or need more answers? Our Have a Question page is the perfect place to look for answers or ask your own questions. So go ahead....pick my brain!
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Oct 08, 19 08:33 AM
Hello, I have a question regarding USDA vs. FHA home loans. I am in the process of getting a home in the next month but was told I wouldn't be approved
Aug 05, 19 10:44 PM
Hi Help please! I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies.
Apr 15, 19 12:36 PM
When buying a home out of state, should we wait for employment contracts? Or can we use our current state's bank? Find the answers here.
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