Current
mortgage rates make refinancing a good deal for many homeowners. If you own
your home and have an FHA mortgage, getting another FHA mortgage will make the
whole process much simpler. Unless you're facing serious credit problems or
your home has lost value, you can easily reduce your housing costs with a
simple streamlined refinance.
Keep
Things Simple
An FHA-backed mortgage can be easy to refinance with another one. If your mortgage is
brand new, you may already have the best rates. Do be aware that there will be
closing costs. Additionally, a streamlined mortgage can't be larger than your
first loan. If your financial situation has changed radically for the worse,
your payment history can get in the way of an effective refinance. If there's a
chance of you having to miss any mortgage payments, act fast on your
streamlined refinance to lower your payments while you rebuild your savings and
your credit.
Smart
Ways To Use The Funds
Your
refinance can free up funds each month by lowering your payment. If you need
extra money each month due to a change in your family size and needs or your
work situation. Do your best to put this extra cash to the highest and best use
for you and yours; if you're not great at budgeting, this refinance may
eventually be more costly than you expected. These refinance may also cost more
for now but save you money in the future. Even if you don't need a refinance,
now is a good time to consider refinancing for a shorter term. Even if you still
have to pay PMI, or private mortgage insurance, for the time being, you can save
thousands of dollars over the life of a loan with a 15-year mortgage instead of
a 30-year mortgage.
The
FHA Supports The Homeowner
The
Federal Housing Administration insures FHA mortgages. These mortgages are easier
to qualify for than a commercial mortgage and they offer lower rates than many
banks. If you already have an FHA mortgage, the FHA streamline net tangible benefit could be
the simplest and most cost-effective method of refinancing. If you and your
home have already been approved for an FHA mortgage, it may be the right time
to look at current rates and refinance your home. For example, you can
●
shorten
the term of your mortgage for a similar payment
●
consolidate
debt and lower your monthly payments
●
pull
out cash and improve your current home if you have enough equity
Now is
also a great time to lock in your rate!
Even
A Small Drop in Interest Will Save Over Time
If your
credit rating has gotten better since you first qualified for your mortgage,
check out your options with a streamlined loan. If you have a 30-year mortgage
right now, a 15 at a lower interest rate could cost exactly the same and cut
your payment schedule in half. Do be aware that these credit checks may be hard
pulls. If you're considering getting pre-approved for a non-FHA loan, make sure
that these credit checks will be what is known as a soft pull. Credit checks
can lower your rating and get in the way of all the hard work you did to raise
your score. If you're working with a mortgage broker, make sure they are only
gathering soft pulls for pre-approval until you know if you qualify for a
streamlined mortgage.
0 Comments