Fha refinance rates are going down all over the country. While that may be good for borrowers, Fha refinance rates are only going down as long as they continue to remain financially stable. Lenders are tightening down their lending requirements so much lately that FHA refi borrowers can take advantage of some of the benefits. However, even with these benefits, you should still shop around before you decide which mortgage lender will approve your left.
There are FHA streamline refinances available to borrowers who need help qualifying for a loan. FHA streamline refi is basically a simplified program that lets homeowners with FHA-insured loans to refinance for less money, less paperwork and less hassle. With a streamline refinancing, there’s no down payment or appraisal required either.
The biggest advantages to FHA refi mortgages are the reduced interest rates and the lack of appraisal. When you refinance using a conventional loan, the appraisal is very important to the overall cost of the loan. It determines the market value of the home. FHA lenders require only an appraisal that is free of errors.
FHA refi loans are also better than conventional loans in terms of being more flexible. In order to qualify for a FHA refi, borrowers must have had a 30-year mortgage. However, this is not the case for all lenders. If you want to take advantage of the benefits of an FHA refi, you need to look for a lender that offers the types of loans that are FHA compatible.
Other benefits associated with Fha refinances include the lower upfront mortgage insurance premium. The upfront mortgage insurance premium is substantially lower for FHA loans than for conventional financing. This means that borrowers save money by paying less up front for a new mortgage loan. It also allows you to pay down your loan faster, which will save you money in the long run. If you are thinking about refinancing to reduce your payments, an FHA loan could be right for you.
A third benefit of FHA refi mortgages is the ability to apply for and receive assistance with income verification. With conventional loans, borrowers are required to complete income verification and wait for approval. With an FHA loan, borrowers can simply file their income and financial information online. Once approved, the lender will determine if the borrower qualifies for additional assistance with mortgage payments.
These are just a few of the reasons why using an FHA home loan refinance to pay off your existing mortgage and bring down your monthly payments is a smart idea. With these few points in mind, you should be able to improve your financial outlook. If you do not qualify for one of the above mentioned special offers, there are plenty of other options available to you. In fact, many lenders are actually offering no deposit financing for those who are interested. No deposit financing can also save you thousands of dollars over the long term.
