Improve Your Term, Lower Payments, and Reduce Rates with FHA Streamline Refinance

Improve Your Term, Lower Payments, and Reduce Rates with FHA Streamline Refinance

If you have an FHA mortgage and your financial situation has changed, you probably gave up hope of refinancing. Look into FHA Streamline Refinance options. They use your existing borrowing relationship with the FHA to benefit all parties. You can refinance for a longer term, lower payments, and even reduced rates.

What is FHA Streamline Refinance?

This refinancing program helps borrows with FHA mortgages improve their finances by offering more borrower-friendly options. Essentially, homeowners trade an older FHA loan with unfavorable terms for a newer mortgage that better suits their needs. There are options for various financial situations, including a five-year adjustable rate mortgage and some fixed rate refinancing options with various terms. Although the details of FHA mortgages change frequently, these are the details as of October 2017.

Many homeowners with unfavorable FHA mortgages can’t refinance through traditional loans due to stringent qualifications. Unlike traditional loans, an FHA Streamline Refinance loan does not require proof of income or employment. There are very few credit requirements, and potential borrowers don’t need to surrender information about their assets or have their homes appraised.

Why the System Works for Everyone

The economy has changed a lot over the years, and this program is designed to help your original lender recover their investment without driving you, the borrower, into financial ruin. This helps both sides of the equation, and since the FHA backs both the original mortgage and the refinancing option, they don’t assume the extra risk. They only increase their chances of getting their money back in full. After all, a short sale or foreclosure ultimately costs all parties. For maximum profit, the lender needs borrowers to pay back their mortgage in full.

How It Can Help Your Situation

We already discussed how FHA Streamline Refinance options demand fewer requirements from FHA mortgage holders. It’s hard to understate how important this is for borrowers. Traditional lenders simply will not refinance a loan when the borrower is having employment difficulties, holds little to no savings, or if the house has lost significant value. Depending on where and when you bought your house, you probably paid more for it than it is worth now, especially if you bought it new. Removing these roadblocks makes refinancing possible.

The range of refinancing options under the program allows you to match your income and realistic financial situation to a new mortgage. If you need a longer term with lower payments, you can find a fitting refinancing option. If you want to get better rates, you can cut your long-term interest costs so you can begin building your savings again.

Life is full of surprises, but that doesn’t mean you have to give up on your dreams. These special refinancing options through the FHA allow you to keep your home and solve the most problematic aspects of your current mortgage. You can set a new term so you have the time you need to recover from a disaster. Lower payments and reduced rates are available to those who qualify.