FHA Streamlined Refinance – A Fast and Easy Way to Save Money

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People who have a FHA loan have a couple of attractive options when considering refinancing. Of particular interest is the FHA Streamlined Refinance – it is fast and easy to implement and can be a no-brainer in saving money.

FHA Loan -Streamlined Refinancing

If current interest rates are lower than what you are paying with your current FHA loan, FHA Streamlined Refinancing offers a low cost way for you to restructure your current loan. FHA Streamlined Refinancing reduces required paperwork, and many times allows you to refinance without paying for an appraisal. While this does not mean that you will not incur any closing costs, it is a simpler way to refinance than most other options. Additionally, the lender may allow you to roll the closing costs into your monthly payments by charging a slightly higher interest rate. At the end of the day, you still are in a good position to save money.

Requirements: Your current FHA loan must be up to date, in good standing and the refinancing must lower your monthly interest payments. You are not able to “cash out” with this type of loan, but can be an easy way to reset your interest rate and save money each month.

FHA Loan –Cash Out Refinancing

Homeowners who have been in their current home for several years probably have equity in their home that can be a lifesaver in today’s uncertain environment. For these homeowners a “cash out” refinance of their home allows them to refinance their mortgage, using a loan value that is larger than what they currently owe on their home. The larger loan value allows them to pay off their current mortgage, get a cash payout of the difference, and restructure the new mortgage to best suit their current situation and income. This type of refinancing allows the homeowner to responsibly restructure their mortgage to have inexpensive access to cash now, and structure their monthly payments appropriately.