| Of course, when deciding which kind of loan is more | | | | higher interest rate in exchange for not charging up |
| attractive in the short, run, FHA loans do not always | | | | front, out of pocket fees for the process. |
| win out. In the long run, however, the FHA loan can | | | | This of course begs the question if this is truly a good |
| actually save the homeowner a lot of money, simply | | | | deal. After all, financing about $3,000 for 30 years is a |
| because it is eligible for the streamline refinancing | | | | lot more costly than simply paying for the expense up |
| option. | | | | front. At the same time, there are borrowers who |
| A streamline refinance is little more than a refinancing | | | | simply cannot come up with these funds, and thus - |
| of the primary mortgage so that it will lower the | | | | instead of foregoing the more advantageous interest |
| borrower's interest payments as well as monthly | | | | rates - they do have the option of rolling this expense |
| principal payments. This kind of a streamline refinance | | | | into the loan. There are some exemptions to the |
| presupposes that the borrower is financially in good | | | | payment of fees, such as with investment properties. |
| shape and that the property will appraise for pretty | | | | Such properties may undergo an FHA streamline |
| much the amount of money that is still outstanding on | | | | refinance without an appraisal, but as such any fees |
| the loan. FHA streamline refinancing does not permit | | | | have to be paid out of pocket. |
| for homeowners to take any equity out of their | | | | The fee issue is the single sticking point that |
| homes, so a cash-out refinance loan - such as it might | | | | consumers experience when attempting to avail them |
| be done to pay off debts or to obtain easy funds for | | | | of a streamline FHA refinance, but if they are working |
| a home remodel - is also not possible. | | | | with a favorable lender motivated to make the loan |
| Fees associated with this kind of FHA streamline | | | | happen, this disadvantage can be ironed out rather |
| refinancing may be added to the loan, as long as there | | | | quickly. It bears mentioning that streamline refinances |
| is sufficient equity in the property to justify this | | | | are not advertised as much as other loans. When it |
| expense. If there is simply not enough equity present, | | | | comes to these other loans, lenders usually stand to |
| the homeowner will have to pay the costs of the | | | | make more money on them in the long run, and |
| refinance up front. In such instances it pays to work | | | | therefore they are much more apt to advertise them |
| with a lender that is open to negotiating these fees. | | | | to current customers and those who are considering a |
| Select lenders may decide to actually offer a slightly | | | | loan with their fiscal institution. |