The FHA Streamline Refinance Option
For homeowners with FHA loans, there is a very attractive refinancing option called the FHA Streamline refinance. This program gives homeowners a great refinancing rate and attractive savings on mortgage payments.
The FHA Streamline refinance option allows homeowners who have an FHA mortgage to refinance without a lot of the stress and hassle that comes with refinancing. As a program participant, you can also expect to see lower mortgage insurance rates along with your FHA Streamline loan. The way this works is by recalculating the amount you currently owe and, in some cases, lowering your interest rate to help you save money on your mortgage payments. There are, however, some guidelines that you will need to abide by.
FHA Streamline Requirements
- Applicants must not have any history of late payments for the most recent twelve-month period.
- The FHA Streamline refinance only applies to people who have owned their property for at least six month and have made six months payments.
- Closing costs cannot be included in the loan, but may be credited by your lender.
- You must use an FHA approved lender.
- An appraisal is not required.
Check with your local FHA approved lender to see if applying for this program could benefit you. You will need to apply through the FHA the same way you would for a new home loan, but you could save thousands of dollars if you are approved.
There is no FHA Streamline cash out option with this refinancing plan, although other plans may be available to you. If you’re looking to refinance your mortgage, talk to Paramount Equity today to see what options are available to you.