| Few Florida mortgage borrowers know this, but the | | | | loan, provided the property has enough equity to cover |
| Federal Housing Administration - or FHA - has allowed | | | | the additional amount. |
| streamline refinances on FHA mortgages since the | | | | Out-of-Pocket Mortgage Costs Covered by Increasing |
| early 1980s. The word "streamline" refers to the fact | | | | the Interest Rate |
| that this particular form of home loan refinance | | | | Lenders handle FHA Streamline Refinancing in different |
| involves a significantly smaller amount of red tape and | | | | ways. Few lenders give "no cost" refinances i.e. zero |
| paperwork than most typical refinances. | | | | out-of-pocket costs to borrower. They will, instead, |
| The basic requirements of the FHA streamline | | | | usually cover your closing costs by increasing you |
| refinance are: The mortgage which is to be refinanced | | | | interest rate slightly.. With this premium, your Florida |
| should be FHA insured.o The mortgage which is to be | | | | mortgage lender will typically cover any closing costs |
| refinanced should be recent and not illegal.o The | | | | required as part of the transaction. |
| refinance is to conclude with lessening the borrower's | | | | Out-of-Pocket Mortgage Costs Covered by Increasing |
| interest payments and monthly principal.o No money | | | | the FHA Mortgage Amount |
| can be drawn on refinanced mortgages through the | | | | Lenders may allow borrowers to pass on paying |
| streamline refinance method. | | | | out-of-pocket expenses by folding the closing |
| Benefits of the FHA Streamline Refinanceo Evaluation | | | | expenses in to the next mortgage value. This is done |
| is not usually requiredo Paperwork involved is minimalo | | | | only if there is enough equity in your property, as found |
| No income verification, credit check, underwriting fee or | | | | by the FHA assessment. |
| employee verificationo Easily decrease or increase the | | | | Remember, FHA Streamline Refinances may be done |
| period of the term of the existing loano Enjoy benefits | | | | by having no appraisal at all, but then the new loan |
| of existing low interest rateso Very little, or even zero, | | | | value must be the same as the original loan value. |
| other expenses involved | | | | Note: Investment properties (i.e. properties where the |
| Most people select the FHA Streamline Refinance | | | | borrower does not live in her or his principal residence |
| because the refinance is available with zero | | | | full-time) can be refinanced via the straight FHA |
| out-of-pocket expenses. This offer comes in two | | | | Streamline Refinance process only. In these cases, |
| ways. In the first, the expenses, if any, can be covered | | | | out-of-pocket expenses must be paid by the |
| by the lender in return for a bit higher interest rate. | | | | borrower. |
| Alternatively, the expenses may be added to the new | | | | |