If a survey was given to Americans on how they felt about Congress over the past several years, the results would most likely not be favorable. Whatever your affiliation may be, terms thrown around such as “a do nothing Congress” or “the worst Congress ever” cannot be limited to just one party. Anyone who continuously watches the news, reads news articles, or listens to it on the radio focuses on one theme; Americans are not happy with today’s government. This is not meant to say that everyone is unhappy about one particular topic and demand that the government should rectify it. This is meant to say that so many people have different things they value the most, so obviously the government cannot rectify everything. However, it is equally important to state that the government has put forth programs designed to help the needs of certain individuals. The Federal Housing Administration (FHA) has created programs for the purpose of providing types of loans that can help homeowners not only save money but keep their homes as well. There are options to choose from, keeping in mind that the process of acquiring a new loan or refinance may not be easy. It is important to learn what this program was designed for and then see when would be the best time to secure this type of mortgage.
What is an FHA No Cost Refinance?
If homeowners feel embarrassed to question a lender about what an FHA no cost refinance is, they shouldn’t. After all, those who are seeking out ways to refinance their home to save money in the long run, have to make sure this is going to happen. A huge mistake would be to jump into a refinance without looking into what you are trying to accomplish. If not, then those who took a leap of faith can discover the hard way that there is nothing on the other side to land on! Therefore, a borrower should research by themselves and ask their lender what this process entails. Customers who are looking to acquire a refinance can easily get tempted in choosing this option since government backed loans tend to be less strict.
While it is always important to have a good credit score, those with lower scores may still qualify. Besides the fact that this form of a refinance must be insured through the housing administration, the original mortgage cannot be delinquent, you must be up-to-date. Also, the new mortgage has to lower your interest rate as well as the monthly principle.
When to Acquire an FHA No Cost Refinance
Anyone who watches HGTV (Home and Gardens Television) is familiar with programs geared to cover the many aspects of the home both on the inside as well as the outside. It also focuses on topics that deal with home renovations. Some programs deal with buying a home while others focus on selling their place of residence. In fact, one program deals with homeowners who want to sell their home so they can purchase a new home as soon as possible. In watching some of these shows, I have noticed the emphasis on two important concepts that sellers and buyers need to remember. Timing is important for both categories as buyers would love the market to be in favor of buyers that can find nice homes to purchase at low prices; as for sellers, the opposite has to happen. The other concept is more known and can be summed up in one word; location! This is important because the selling price for a home and what it is actually worth changes depending on what other prices are going for in the neighborhood. A homeowner needs to look at everything that can influence the amount of a government backed refinance before deciding whether to acquire this type of a loan with closing costs paid upfront or to have those costs factored in with the monthly mortgage payments.
Living in a world where the concept of “change” is mostly a part of everyday life, this occurs whether a person consciously decides on a given day to do this or has to because of at least one factor emerging that was not previously expected to do so. If an individual can accept this concept as being accurate, then it is understandable that saying the exact day of a predetermined week would be the best time for a person to refinance their home. Despite this, lenders that are backed by the government can look at all the factors that influence refinancing and give the best estimate based on the information at hand. For deciding if it is better to take an FHA no cost refinance or to pay closing costs up front has to be determined by the borrower. To do this, one must look at their present finances to see if the funds are available. If so, the next question is to decide if it is in their best interest to pay the closing costs upfront, which would lower the monthly payments of the new mortgage, or to avoid paying these costs upfront and have them added into the repayment schedule. By doing this, it will increase the monthly payments of the new mortgage. More than anything, picking the right lender that can give you the best deal for the situation that you are in is going to be the secret to acquiring an FHA no cost refinance.