Knowing how busy people’s lives are day-to-day, anything that can be done to alleviate time consuming instances would be greatly appreciated. Accomplishing one goal with one option is preferred compared to having multiple choices to consider. Though it is true that the more options available to an individual are a good thing, this can present a problem when a time factor is applied. Take for example a homeowner who realizes it is time to refinance their home in order to have access to much needed funds. To achieve this goal, it is decided that an FHA refinance loan would remedy this situation. One decision made to reach a specific goal within a short period of time results in a victory walk into the sunset; right? Alas, it is unfortunately not the end to this story being that there a multiple FHA refinances to choose from. The victory walk can still be achieved but homeowners will need to spend the time to find that correct government backed loan that best suits them.
Will a Borrower find it Difficult to seek out an FHA Refinance Loan?
Anyone who thinks it will be impossible for them to research the types of housing administrative refinance loans out there has little or no shopping skills. Usually, when consumers begin the task of obtaining certain products, they will look to see where they need to go to obtain them. Once that has been accomplished, the consumer will seek out the best savings for a particular item. This is no different as a borrower is seeking a loan that secures the highest amount possible while obtaining the lowest interest rate in repaying the loan. Though there are several options to choose from, let us discuss a few examples of the types of federally backed refinance loans that exist.
Examples of Loans for Homeowners to Choose From
- The first example of an FHA Refinance Loan is known as an FHA-Secure loan. This is similar to other federally backed loans as this program has been designed to assist owners of homes avoid foreclosure. Those who are current or delinquent on their mortgage as well as no matter what their reset status is; the homeowner is given the opportunity to acquire a federally backed loan. This means that you will not be immediately disqualified because you’re currently delinquent on your loan. To qualify, a person should be current in their original loan as well as having an income that would allow the new mortgage to be paid. For those who are delinquent on their mortgage, the reason for the default must have been influenced by the payment shock in regards to an interest rate reset. Also, in the event of an Option ARM (adjustable rate mortgage), the “recasting of the loan to completely amortizing. With this type of a refinance loan, the owner of a home will be able to pay off the mortgage with lower monthly payments. Not only will this help homeowners to achieve a better quality of life but help decrease the amount of defaults on mortgage loans and will eventually bring stability in the housing market.
- A federally backed Cash-Out Refinance deals with those who have discovered their house is currently worth more than when it was originally purchased. This allows the owner to take their first mortgage and replace it with a new one that is more than what is currently owed. Unfortunately, this type of a refinance benefits those who are current on their mortgage and not those who are delinquent. Unlike an FHA-Secure loan, those who are not current on their loan should look at another option in refinancing their mortgage.
- Those who want to look at another option can try a federally backed Streamline Refinance. The reason why it is streamlined is the homeowner will be able decrease the interest rate of the original loan in a quick manner. Mostly, this can be done without an appraisal of your home. Considering the amount of time and money involved in obtaining a refinanced loan, this option will lessen the amount of paperwork a lender would have to complete; therefore, the owner of the home will save on both money and time. Keep in mind that those who are not current on their mortgage may not qualify for this type of a mortgage.
- As far as I am concerned, there never seems to be enough time during a course of a given day to complete all the tasks or chores I want to. I find that in certain areas I need to cut corners to finish as soon as possible while others cannot be resolved in one day. This applies to anyone who is seeking out an FHA refinance loan. In order for the refinance to be successful for a homeowner in considering the need for the “now” as well as in the “future,” it would be ill-advisable to rush into the first government backed refinance loan that is available. By letting the consumer within you take charge to seek out the type of loan that is best suited for you, the extra effort will ultimately pay off; thus being able to take part in that victory walk into the sunset.