If you’re looking to refinance your mortgage, you may find that current FHA streamline rates offer you the most affordable option. You need to do your research if you’re considering FHA streamline refinancing.
The following are five things to be aware of regarding FHA streamline refinancing.
You may be able to get an FHA streamline refinance loan without a credit check.
In many cases, a credit check is not required to qualify for this type of refinance loan. Therefore, this might be a good solution for you if you’re looking to refinance but your credit score prevents you from getting approved for another type of refinance loan.
You don’t have to get your home appraised if you take advantage of FHA streamline refinancing.
Another huge advantage of this type of refinance loan is that a home appraisal is not required. With an FHA streamline refinance loan, the FHA will use the original purchase price of your home as its current value without the need for an appraisal.
This can help you to refinance with a lower interest rate even if you owe more on your current mortgage loan than your home is worth.
FHA streamline refinancing can help you get back on track when you’re underwater on your mortgage.
Being underwater on a home mortgage is stressful and risky. It can be difficult to get out of this situation without severe damage to your finances. FHA streamline refinancing can be a great way to get back on track with minimal overall damage to your finances after you’ve been underwater on your mortgage.
FHA streamline refinance rates are typically lower than interest rates for typical mortgage loans.
Naturally, you want to minimize interest costs when you’re refinancing your mortgage. Fortunately, FHA streamline refinance rates are lower for many consumers than the interest rates of traditional refinance loans would be.
You’ll need to have at least three previous months of perfect on-time payments to qualify.
While you may not need a credit check or home appraisal for your FHA streamline refinance loan, you will have to show that you’ve made all your payments on time for the last three months. This is one of the most important requirements you’ll have to meet to be approved for this type of refinance loan.
If an FHA streamline refinance loan seems like a good fit for you, you can check on the current FHA streamline rates.