If you have an FHA loan and would like to see if you can take advantage of lower interest rates, FHA streamline refinancing programs may be a way for you to re-fi at minimum out-of-pocket costs and without the worry of a low appraisal.
In order to qualify, you do have to have an FHA-insured loan and be current on your loan payments. Often times you will be able to qualify without an appraisal – which is helpful for many home owners who have seen their home value go down drastically over the years (traditionally you wouldn’t qualify for a re-fi if your home didn’t appraise for loan value). This also saves you from paying for an appraisal which lowers your re-finance closing costs. Some programs have reduced mortgage insurance payments and can be approved regardless of occupancy.
There are many parameters considered by the banks – for instance your overall financial standing, employment status and credit score. You also are not allowed to take cash-out with the re-finance under this program. We recommend contacting a lender directly to see if you qualify. We can provide great lender recommendations if needed.
Benefits include lowering your monthly payment and paying less interest over the life of your loan – well worth the time to evaluate if this is an option for you.