With the news of arms or adjustable rates increasing, many homeowners might be afraid to try in fear of what they have heard in the media. People telling you that certain programs don't exist anymore. But you don't know unless you try, right? But just be careful of lenders promising you the world. I will explain more later.

Refinance your adjustable rate mortgage before it increases. Are there mortgage programs out there for such people with rates about to rise? Yes, certainly. Even if your credit is less than perfect. And you might be asking yourself, how is this possible. Not all lenders can do a FHA mortgage, but I am very knowledgeable in regards to FHA loans and they can be a great asset to someone that might not be able to refinance conventionally.

Here are a few reasons why FHA mortgages are better than conventional refinances.

• Rate and term -- FHA will allow you to go to 97.75% of your value and conventional loans will only allow you to go to 90% of your value. So if you think you might not have enough equity, you might be wrong. FHA's maximum LTV is much higher, even for cash-outs. For more information, please read : FHA refinancing cash-out

• FICO scores aka credit scores -- FHA will allow you to go down to a 500 score. Depending on the approval levels, it's not 100% determined on what you could be approved for conventionally. But there are certain penalties if you are under a 680 credit score. Please read on the new updates : The new difference between FHA & Conventional loans

• Credit standards -- FHA is a lot more relaxed when it comes to your credit, lates on certain items, and bankruptcies. For more information, please read : FHA Credit -- Understanding what works
  

Conclusion : If your adjustable rate is about to adjust in the next month to 6 months, you should look into it now. No matter if you think you could refinance with a conventional loan or even a FHA loan, you need to make sure that you are dealing with a mortgage professional.

On another note, if you have already applied with a lender and it's been 3 to 5 weeks and you haven't closed as of yet, there might be some worry for concern. When refinancing your mortgage, you don't need a magician. You need someone to be upfront and honest. If you are starting to get the runaround, no return phone calls, your e-mails aren't being replied to, or it seems one excuse after another.... RED FLAG !!! (this is just my opinion, but not only could I tell you many stories from past clients, so could many realtors and other consumers. Just read some of my testimonials.) Overall, stop listening to their excuses and seek another opinion. It would only take 15 to 20 minutes.

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For more information on FHA loans, please go to this link. The FHA Expert You can also go to this group : The FHA Mortgage Group

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

Copyright © 2007 by Jeff Belonger