| If you are in the market for a refinance, you have | | | | respect to being a good candidate for a streamline |
| undoubtedly heard about the various loans that are | | | | FHA refinance is whether or not you need to get cash |
| currently offered by lenders. There are adjustable rate | | | | out. Consumers hoping to pay off high interest credit |
| mortgages, those that feature balloon payments, loans | | | | cards or make down payments on major purchases |
| which offer substantial cash-out options, and of course | | | | find this the single most frustrating aspect of the |
| also the loans that change an existing 30 year loan to | | | | streamline refinancing aspect. |
| a shorter 15 year loan. If you are in the market for a | | | | Since this kind of refinance does not allow for any |
| refinance, you have undoubtedly heard about the | | | | cash-out option — no matter how much equity |
| various loans that are currently offered by lenders. | | | | in your home you might have — it is rarely |
| There are adjustable rate mortgages, those that | | | | chosen as a first choice. Moreover, consider if your |
| feature balloon payments, loans which offer substantial | | | | home is close to its appraised value. If the home might |
| cash-out options, and of course also the loans that | | | | appear to be at or over the appraised value, there is a |
| change an existing 30 year loan to a shorter 15 year | | | | chance that it cannot fall under the streamline |
| loan. The FHA streamline loan does not perform the | | | | refinancing policies. An appraisal might be ordered to |
| same tasks as these loans, and in some cases | | | | determine where the property stands with respect to |
| consumers may wonder if it is truly advantageous to | | | | its appraised value. Of course, if an initial search of |
| opt for this kind of loan, especially since there are so | | | | comparable properties shows that the home is in |
| many other options which are far more often | | | | keeping with the general values in the neighborhood, |
| advertised. Lenders appreciate the business of the | | | | and if the consumer has built up some equity, then |
| alternative fiscal tools simply because they stand to | | | | lenders usually do not insist on such an appraisal. |
| make more of a profit on them than on a simple FHA | | | | Costs are not one of the major issues with FHA |
| streamline refinance. | | | | streamline refinances as they might be with another |
| To be considered a candidate for the FHA streamline | | | | loan. Of course, there are still costs and fees, but they |
| in the first place, the home loan you currently have | | | | can sometimes be rolled into the loan as long as there |
| must be mortgage loan that is insured by the FHA. If | | | | is sufficient equity. Some lenders advertise a no fees |
| your current mortgage loan does not meet this | | | | refinance, but the more accurate advertisement would |
| requirement, you will not be able to take advantage of | | | | be for a refinance that requires no out of pocket |
| the FHA streamline refinancing program that is offered. | | | | expenses. As such, these fees are either added to the |
| Secondly, you must be current on your loan. If in the | | | | loan or they are expressed in a slightly higher interest |
| past there was a late payment, you may still be able | | | | rate than what is offered to other consumers taking |
| to qualify, but if your loan is currently in default, you | | | | advantage of the refinance. Consumers who can pay |
| cannot participate in the FHA streamline refinance | | | | these costs out of their own pockets are the best |
| program. Another question to ask yourself with | | | | candidates for FHA streamline refinancing. |