Streamline Refinance

Streamline RefinanceIs a “Streamline Refinance” the Right Solution for You?

In order to allow borrowers with and existing FHA loan an easier option to refinance, the agency has updated their streamline program to provide assistance. If you are one of these homeowners, you might find this is a great way to get your mortgage refinanced with a minimum of expense and hassle. This includes eliminating a new appraisal.

The need for a streamlined refinance program does cut down on the necessary documentation and underwriting required by a lender, it is still a transaction that has certain qualifiers and costs. However, some lenders have developed ways to minimize the out-of-pocket expenses to refinance.

Find Out the Special Considerations for Streamline Refinance

While you should visit with a qualified lending professional who keeps track of such programs and any changes to it, the basics of your being eligible for a streamline refinance are:

  • Your mortgage must already be insured by the FHA.
  • You must be current on your loan payments.
  • The refinancing, when completed, must lower your total monthly payments for principal and interest.
  • In some circumstances, you can use the program to convert an adjustable rate mortgage, or ARM, to one with a fixed rate.
  • Additional requirements may apply.

If your financial situation has changed and you need or wish to lower your monthly payments, you may find this potential for a streamline refinance is a great financial tool for that purpose.

HUD has prepared a detailed handbook that explains the program, but you can also get a great overview by visiting with an approved lender. If you are strapped for cash and can’t pay for the costs of a refinance, your lender may charge a higher interest rate and cover those costs themselves.

While the FHA does not allow a lender to roll closing costs into your new streamline mortgage, the added interest costs cover those expenses during the life of the loan. Questions? Contact Paramount Equity today.

 

The Paramount Pledge™ – Triple Protection

The Paramount Pledge. It is our promise to you that we’ll provide the best rates, won’t charge you an application fee to lock in a rate and will ensure we can close and lock in a rate at the terms we provide.

No Application Fee – Other lenders charge hundreds of dollars to start the loan process with you. Paramount Equity Mortgage® will never ask you to pay an application fee just to lock in your rate.
Better Rate Warranty – After you complete a loan with us, we will cover most of the cost to refinance or purchase within the next seven years, for any reason.
Set & Secure Closing Guarantee™* – Once we receive all required borrower information, your signed disclosure and lock your loan, we guarantee we can close your loan at the rate and terms we provided. If we can’t, we will pay you $500.
* The Set & Secure Closing Guarantee is not valid in the event that there is an unforeseen change such as, an appraisal coming in under value, undisclosed debt at the time the loan was pre-qualified, a change in income due to loss of job or change in employment, etc. This guarantee is also not valid in the event that you withdraw your application or request a change to the terms of your loan. A change in terms would consist of, but is not limited to, a change in loan amount, fixed vs. adjustable rate, number of years the loan is amortized, adding/removing a borrower, etc.