| Before you refinance any mortgage there are certain | | | | an existing loan loan. In this particular loan type you are |
| terms you should consider. The same can be said | | | | not given cash, but the refinancing will pay the existing |
| about the FHA refinance loan. Any mortgage that you | | | | loan off. This option helps you lower your repayment |
| currently have on your property can be refinanced into | | | | amount in the event that the interest rates have |
| an FHA loan. Refinancing your loan into a Federal | | | | decreased since you were awarded the first FHA |
| Housing Administration loan provides you with a lower | | | | loan. In the current economic climate the base rate has |
| monthly payment, the ability to avoid foreclosure or | | | | significantly decreased, allowing interest rates to |
| default, or it can help with home repairs. The refinance | | | | decrease as well. For a person who acquired an FHA |
| loan is different than the FHA HOPE. FHA HOPE is a | | | | home loan during the housing boom it could be very |
| homeowners program that protects individuals from | | | | lucrative for you to refinance. |
| default or foreclosure only. | | | | The downside to refinancing in the current market is |
| There Federal Housing Administration makes four | | | | the home values. Many areas are suffering from |
| types of refinance loans available to you.o The Cash- | | | | degraded home values, presenting a situation of |
| Out refinance options allows you to refinance 85 | | | | negative equity. This may limit your refinancing options. |
| percent of your home's value. The value is determined | | | | If your home value is still on the positive side under the |
| by a professional appraisal with the FHA lender.o A | | | | streamline product, the Federal Housing Administration |
| Cash- Out option of 95 percent of the appraised | | | | allows for the closing costs to be a part of the loan if |
| value.o No cash- outo Streamline FHA refinancing | | | | the equity is sufficient. |
| There are requirements even with FHA refinance | | | | If you are refinancing to an FHA loan there is no down |
| loans that you must adhere to. In the cash out options | | | | payment required. This has been somewhat confusing |
| listed above the borrower is required to own the home | | | | for home owners. Since all FHA loans require a down |
| for at least a year before applying for the refinance | | | | payment, homeowners automatically assume this |
| loan. For all four loans the amount you can obtain for | | | | means the refinancing products as well. FHA refinance |
| refinancing will be determined by the homes appraised | | | | loans work like mainstream remortgages, thus there is |
| value. The calculation for non streamlined loans is a bit | | | | no down payment in a refinance situation. |
| more difficult, and not really necessary to discuss other | | | | These refinance loans are available to any person |
| than to say the calculation has to deal with the original | | | | who qualifies for an FHA loan. Most refinance products |
| mortgage and any second mortgages you might have | | | | with FHA require that you go through the same |
| on the home. | | | | qualification process as the regular FHA loan process. |
| FHA streamline loans can only be obtained if you have | | | | |