As most zero down mortgage programs have been phased out of the market, more population have turned to Fha financing for their home loan needs. Agreeing to a 2009 Nytimes.com article citing Inside Mortgage Finance as its source, Fha loans represented only 1.8% of the market back in 2005 and 2006 and have since grown to list for nearly 17.1% of new origination's. Simply put, there are now millions of homeowners who now have Fha mortgages who may advantage from an Fha streamline refinance. Fha streamline loans permit qualifying borrowers to refinance with less paperwork than may be required through other financing channels. Streamline mortgage loan may also need no evaluation that may take off an added 0-500 charge out the transaction. Some lenders and brokers may not regain revenue verification, verify employment, or charge lender fees. Basically, an Fha streamline loan allows a buyer the potential to quickly, and hopefully easily, refinance their Fha loan with diminutive to no money out of pocket.
Why think an Fha Streamline Refinance?
People have all dissimilar reasons for refinancing but the majority of home owners think refinancing to save money on their monthly payments or are hoping to shorten the duration of their repayment duration (i.e. Switching from a 30 year mortgage down to a 15 year loan). In a low sufficient rate environment, it may be possible to achieve both of those goals in one step. In 2010, mortgage rates fell to the lowest rates since Freddie Mac began tracking rates back in the 40's or 50's. 30 year rates dropped down in the 4.000 - 4.500% range and 15 year fixed mortgage rates fell below 4.000% in some scenarios. This market has enabled thousands of home owners to drop years off their loans while potentially salvage tens of thousands of dollars in interest. It is leading to note that cash-out refinancing is not ready with Fha streamline loans.
Taking the Next Steps
Current home owners who have Fha insured loans and whose payments are current and whose loans are in good standing can take advantage of Fha streamline refinancing with diminutive down side. What closing costs that may exist, can often be given back in the form of a prestige at closing. The lender or broker Simply inflates their rate a bit and earns more money which they then use to prestige back to cover any loan linked expenses.
About Fha Loans
The Federal Housing management (Fha) provides mortgage assurance on home loans offered by Fha approved lenders. This mortgage assurance protects the lenders against possible losses resulting from borrowers defaulting on their mortgages. Fha loans have become increasingly more favorite in the past few years as Fannie Mae and Freddie Mac have tightened their program guidelines development Fha loans one of the go-to sources for low money down mortgage financing. Fha loans are also known for having less literal, financing guidelines in that prestige standards and debt to revenue ratios may be slightly more lenient than what is ready through other conforming mortgage loans products.
What Is a Fha Streamline Mortgage Refinance?