4 Solid Steps to Refinance Your Home

  Refinancing can be easy depending on the situation. It’s important to refinance your home in a way that benefits your needs not just now but the duration of the loan. Refinancing Your Home With FHA Loans An FHA loan might be a great advantage to you. Just be clear on the different rules and regulations that go into this type of refinance. You have a choice of lowering your mortgage rates or utilizing a cash out situation depending on your equity. One option requires a solid credit and equity line, and the other is more focused on stable income. https://refinancey.com/wp-content/uploads/2015/07/4-Solid-Steps-to-Refinance-Your-Home.mp3   5 awesome FHA Refinance options you need to know about. Topic for Today’s Conversation – FHA Refinance Options Learn How to Weigh Your Options Before You Acquire a Short Refinance Create More Stability With an FHA Streamline Refinance FHA streamline refinance can help you lower your mortgage rate fast. The advantage of choosing a streamline option is you don’t have to endure a long wait in processing the refinance. You don’t need to get an appraisal or go through a huge amount of paperwork to refinance your home. A major reason homeowners don’t prefer this refinance situation is because you cannot take cash out of your equity. You can only use this option to help with your mortgage. However, you won’t have to go through a lot of responsibility and extra fees like a federal cash out refinance. FHA Cash Out Refinance An FHA cash out option is a great alternative that allows you to create more opportunities using your equity. In this type of refinance, you...

What is an FHA Streamline Refinance Company

  If you currently have a loan with a federally insured lender and you want to refinance, you’d be wise to look at the streamline option and see if it will fit your needs. This refinance is a loan specifically for homeowners that already have FHA-insured loans, and acquiring it is a much simpler process than traditional refinances. FHA refinance companies offer this type of loan to homeowners because it is a loan that benefits both parties. https://refinancey.com/wp-content/uploads/2015/05/What-is-an-FHA-Streamline-Refinance.mp3 What Is an FHA Streamline Refinance and How Does It Work?   Use the Streamline Refinance to Secure FHA Refinance Interest Rates   The Benefits of an FHA Streamline Refinance Requirements and Guidelines for a Streamline The greatest benefit of the streamline refinance is that it isn’t a hassle to acquire. The second benefit is lowering your interest rate or monthly payment. With a standard refinance you have to submit quite a bit of paperwork, including work history, job history, credit history, and your assets and debts. You also have to get an appraisal done on the home. Then, once everything has been submitted, you play the waiting game while all of your information is going through the underwriting process. It is definitely a process for a traditional refinance, and it can take some time before it is completed. This isn’t the case with the streamline. The streamline refinance uses most of the information that was previously submitted to the lender to get the loan approved in the first place. You will have requirements that have to be met and you’ll need to provide some documentation, but a large portion of...

The Risks Involved in Home Refinance Loans

If you were to strike up a conversation about, now being the time to refinance your home or wait for interest rates drop more, I gather there would be an answer more than a simple “yes or no.” Those that are knowledgeable of how the market works could show ample support for their answer. However, even if the housing market shows all of the signs that now would be a good time to refinance, it would be wise to make sure you know what you are getting. Today’s conversation will take a look at the risks involved in home refinance loans as well as when it’s not a good time to refinance. Mistakes to Avoid With Home Refinance Loans One of the reasons homeowners look to acquire home refinance loans is to be able to reduce their monthly mortgage payments. In order to accomplish this, borrowers will obtain a new loan that has lower interest rates. When this happens, homeowners would think their goal has been reached and the savings that will be recouped can be used for other financial matters. What borrowers may not realize that there are risks to refinancing and if a mistake is made during the process, the new mortgage will be more harmful than beneficial. One common problem deals with the extension of the loan term. When a mortgagee seeks to refinance their mortgage, it is common to increase the time before the loan has to be paid off. For example, a borrower decides to extend their new loan to thirty years though only having ten to twenty years left to pay off the...

What is an FHA Streamline Refinance?

The ins and outs for the FHA Streamline Program FHA (Federal Housing Administration) has permitted streamline refinances on FHA insured mortgages since the early 1980’s. The streamline refers only to the amount of documentation and underwriting that needs to be performed by the mortgage company, and does not mean that there are no costs involved in the transaction.  Streamline The Following Loan Types Note: All loans that are to be FHA Streamlined must be currently insured by FHA (Federal Housing Administration). Fixed Rate Mortgage Adjustable Rate Mortgage Graduated Payment Mortgage Secure Mortgage Condo Loans Rehab Loan Energy Efficient Mortgage Requirements for an FHA Streamline. The mortgage to be refinanced must already be FHA insured. (This will show on your mortgage note) The mortgage to be refinanced should be current (no 30 day late payments within the past 6 months). The refinance is to result in a lowering of the borrower’s monthly principal and interest payments. In fact the refinance must be lowered by at least 5%. No cash may be taken out of mortgages refinanced using the streamline refinance process. Benefits of the FHA Streamline No Closing Costs Depending on the type of streamline the borrower chooses, they may be able to get an FHA Streamline at no cost. Defer 1 months payment Most companies call this skipping one months payment but legally the borrower isn’t actually skipping a payment, they’re simply pausing their loan for 1 month. No Appraisals As long as the new loan balance does no exceed the homeowner’s current loan balance FHA does not require an appraisal for the refinance. Although if you wish to add the closing costs to the...

Choosing From Your Refinance Options

When you go to refinance your mortgage you’re going to be faced with a lot of refinance options. There are many options because not every person is going to benefit from one cookie cutter, across-the-board refinance. Some of these refinances can be acquired through FHA and some will be acquired through conventional lenders. What you will want to do is determine which refinance is going to benefit you the most, and then find the lender that will be willing to work with you to make the refinance happen. FHA Refinance Options The Federal Housing Administration has been around for a long times and it has been the means for thousands and thousands of people to get into a home or make better use of the home they have. The biggest benefit this administration can boast is that it makes it possible for people who are dealing with imperfect financial situations to qualify for a loan regardless of their financial blueprint. To better serve struggling homeowners the federal government created a variety of refinance options. Each option is unique and serves a different type of homeowner. The first option is the streamline refinance. This refinance is for homeowners who are in good standing on their loan, who aren’t underwater in any way, and who simply want to reduce the monthly mortgage payment and the interest rate. The homeowner must also have a loan that was acquired through a federal lender. The second government loan option is the cash-out refinance, which is an option for homeowner’s who have equity in their home that they want to use elsewhere. This refinance will...

FHA Qualifications for a Streamline Refinance – the Dos and Don’ts.

Federally insured loans are a good way for people to take control of their housing situation when they can’t qualify for funding through a conventional lender. This is true for new homeowners, but it’s also true for existing homeowners who have a mortgage that is just a little bit more than they can handle. The streamline refinance was designed specifically for these homeowners, the ones that need to revamp their mortgage to make it more workable. The FHA qualifications are not difficult to meet and the end result is a mortgage that takes a smaller bite out of your monthly paycheck. FHA Qualifications for Approval As you might have guessed from the name, the streamline refinance is a faster, easier way to refinance your home. Like all FHA loans, you do have to meet a few minimum requirements. These requirements include a decent credit score, credit history, work history, and assets. Of course, if you are eligible for a streamline refinance than there is a good chance you already meet these qualifications. That being said, here is a quick overview of what has to happen before qualification for a 203b loan. First, you have to have a credit score of at least 500. Any lower than that and you cannot qualify for a federally insured loan. If the score is between 500 and 579, you can qualify for a loan at 90% loan to value. Anything higher than a score of 580 means you are eligible for the full amount of federal insurance and you can qualify for a loan at 96.5% LTV. In addition to this, you have to have a stable work history and a two year relationship with the same employer....