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FHA Streamline Refinance

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Mortgage and Lending with Pre-Approval, First Time Buyer, Fixed Rates

FHA Streamline Refinance

FHA Streamline

Another popular mortgage product that has caught on in the past few years is the FHA Streamline. Now, keep in mind, you must already have an FHA Mortgage to qualify for this type of refinancing. With that said; if you have an FHA mortgage, you may be able to significantly lower your monthly payment, even if you owe more than your home is currently worth.  

This type of financing is available for all Federal Housing Authority loans. FHA Streamline allows anyone to take advantage of lower interest rates by refinancing their current FHA loan, into a lower fixed rate on a new FHA loan. A lower interest rate means a lower mortgage payment. A lower mortgage payment means more homeowners will be able to stay in their homes and avoid foreclosure.

How can a lower monthly mortgage payment benefit you?

Let's look at an example of how this program can save you money. If you have a 30-year fixed rate loan for $250,000, at an interest rate of 7 percent, your monthly payment is approximately $1,663. Refinance that loan at a rate of just 5 percent, and your new payment would be about $1,342 - a savings of $321 every month, $3,852 in a year, and $115,560 over the 30-year life of the loan. Think about this; what would you do with an extra $321 a month. Or, and extra $3,852 a year? If  you are already paying a higher interest rate on an FHA mortgage, refinancing that mortgage with an lower interest rate is actually putting money back in your pocket! 

Has your income decreased since you financed your home?

FHA Streamline makes it simple. With the relaxed guidelines recently approved by the government, it's possible to qualify for an FHA refinance with NO income verification. These rules make it easy and faster to get a lower payment on an FHA loan.

Has your home decreased in value since you last financed?

Appraisals must be done for other mortgage loans. But, with the Streamline process, FHA Streamline makes this process simple.  Because the appraisal may not be required, homes that are worth less than is currently owed on the FHA loan may qualify for refinancing.

Do you qualify for FHA Streamline?  Find out today.

In todays down economy, it's easy to see why the popularity of  the FHA Streamline is growing fast. It is a program that every homeowner with an FHA loan should think about and look into.  If you already have an FHA loan, the FHA Streamline could lower your mortgage rate and monthly payment, and still give you the security of the FHA program.

Contact: Stephen-Michael to see if you qualify for this opportunity to refinance your FHA loan with an FHA Streamline Refinance.

Posted by

                                            Stephen-Michael Washington

                        Stephen-Michael                                                                   Loan Originator                                                  
                                        FacebookHamilton Mortgage Corporation                                                       Office:  205-986-4210                       

Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Stephen the FHA Streamline refinance program may be the saving grace or a lot of people.  However, this one statement concerns me:

it's possible to qualify for an FHA refinance with NO income verification.

Many people including myself would say "isn't this part of the reason for the current mortgage and real estate crisis?

Feb 24, 2011 11:58 PM
Stephen-Michael Washington
Pre-Approval, First Time Buyer, Fixed Rates - Birmingham, AL
FHA and VA Mortgage Loans Alabama

Charita-

Thanks for your response. I understand the concern centered around that statement and you make a valid point. With the FHA Streamline you are only dealing with an individual that is currently in an FHA loan and is refinancing. They must have a clean mortgage history for the past 12 months. Sometimes you have individuals that have a high interest rate, had some life changing events that has put them in a bind. It's a struggle to make their mortgage payment. Maybe the factory they worked in closed, or due to the economy their income is not what it used to be. This program offers them the ability to refinance despite those changes. They could lose the home if they don't do it, because they can't afford the payment anymore. They can not get approved, because their income is less. FHA has strict guidelines for this program to ensure that the borrower is  lowering there monthly debt and there is a Clear Benefit to the borrower.

Feb 25, 2011 09:16 AM