Learn About Your Mortgage Options
Homeowners enjoy the benefits of investing in their property year after year. For some, there comes a time when that investment can come in handy. Refinancing with an FHA loan can prove to be an effective way to put that equity to work. Keep in mind that FHA refinancing is only available to homeowners who are currently using their home as their principal residence.
FHA options to homeowners who are considering an FHA refinance mortgage:
This refinancing option is especially beneficial to homeowners whose property has increased in market value since
the home was purchased. A Cash Out refinance allows homeowners to refinance their existing mortgage by taking out
another mortgage for more than they currently owe.
This refinancing option is considered streamlined because it allows you to reduce the interest rate on your
current home loan quickly and oftentimes without an appraisal. FHA Streamlined Refinance also cuts down on the amount of
paperwork that must be completed by your lender saving you valuable time and money.
FHA NEWS and RELATED ARTICLES
There is a required wait time between the date when the borrower begins making mortgage loan payments on the home and the day the borrower becomes eligible to apply for FHA Streamline Refinancing on that mortgage.
If you're applying for a first-time FHA home loan, you're likely wondering how long your mortgage will be and what kinds of options you might have for shorter or longer loans, early payoff or what happens if you just pay the monthly mortgage minimum.
In the last part of 2012 and the early parts of 2013, mortgage loan interest rates have been reported at lows not seen in many years, causing many FHA borrowers to think about refinancing an existing FHA home loan.
Early in 2012, the FHA and HUD issued some guidance in the form of Mortgagee Letter 2012-4, including news of a decrease to the annual Mortgage Insurance Premium for certain Streamline Refinance transactions.
If you are looking to refinance an existing FHA mortgage with an FHA Streamline Loan, there are some details you should know when planning for the loan application.