|
Refinance Your Fha Home Mortgage Loan - Refinancing With The Streamline Process
By: Carrie Reeder iSnare Expert Author
You can now refinance your FHA loan with their streamlined process. With reduced
paperwork, your lender can process your mortgage much quicker. There are some
unique requirements to refinance your FHA loan, but you continued to be backed
by the FHA through this process.
Basic Requirements
In addition to having a good credit record to refinance your home, the FHA also
requires you to already be FHA insured and be current on your mortgage.
Refinancing also has to lower the borrower’s monthly payment, and no equity can
be withdrawn.
Refinancing Packages
Financing companies offer a couple of different refinancing packages for FHA
mortgages. A common package offers no up front payment to refinance. Often these
types of mortgages are touted as “no cost”, but you pay higher interest rates
for this option.
Another type of refinancing package allows closing costs to be included as part
of the mortgage amount. This option is only available if there is enough equity
in the property, which is determined by a FHA appraiser.
You can also choose a traditional refinancing package where you pay loan fees
and points up front. This option will give you the best rates.
Mortgage Terms
In addition to low interest rates, you can save money and build up your equity
faster by choosing a short term loan rate. By converting from a 30 to 15 year
mortgage, you qualify for a lower rate and reduce you overall interest payments
by at least half.
If you have an adjustable rate mortgage, you can also save on interest rates in
the long term by locking into a fixed rate mortgage. However, if you think
interest rates will fall in the future, stick with an ARM.
FHA Lenders
Only HUD approved lenders can refinance FHA loans. Fortunately, most lending
companies are HUD approved. You should also compare rates and fees of these
lenders to be sure that you find the lowest rates and fees.
To save time, use an online mortgage broker to request quotes. Within a matter
minutes you can have a list of lenders with their rates to compare. From this
list you can request more information from lenders or apply online for speedy
processing. Online lenders will also offer discounts since they have less
overhead costs than traditional financing companies.
About the Author:
See my recommended Home Mortgage Refinance Lenders for the lowest rates online. Carrie Reeder is the owner of ABC Loan Guide, which offers help finding low rate home mortgage loans. |
