Too many people are now struggling to make their mortgage payments and aren’t sure what they can do or where they can turn for help. Some of those people are under the impression that there is nothing to do but file for bankruptcy and let their house go. Not only does this put a strain on their credit history, but it will eventually add to the growing housing problems. But before you give up the keys to your home, you might want to do a little bit more research to see what your options are. Make sure to look into FHA Streamline Refinance Mortgage programs that are specifically designed to help you lower your monthly payments.
One common misconception about the FHA Streamline Refinance Mortgage programs is that they were just recently introduced to ward of more problems for the mortgage industry.
Actually, FHA has been offering FHA Streamline Refi loans since the early 1980s. But don’t think that this is going to take place over night. The word “streamline” really is referring to the amount of underwriting and paperwork required by the lender. Another important point to remember is that this also does not mean there is no cost involved to do this. As with any mortgage, there will be costs associated to do a streamline refinance.
There are a few requirements that need to be meet before your loan can be eligible for any FHA Streamline Refinance Mortgage programs.
The four basic qualifications are that your loan must already be FHA insured, your mortgage cannot be past due or delinquent, the transaction must result in a lower monthly principle and interest payments, and there is to be no cash taken out from this transaction. If your loan meets those four requirements, you can apply to streamline your mortgage.
Lenders can offer you an FHA Streamline Refinance Mortgage in a variety of ways. Sometimes, you might be able to find a lender that will offer you “no cost” refinances, but what this really means is that there will be no out of pocket cost to you. Lenders will often charge a higher interest rate than if you simply paid the closing costs in cash and because you are paying a higher rate, the lender will take care of the closing fees on your behalf.
The most important thing to remember when doing an FHA Streamline Refinance Mortgage is to read all the paperwork and make sure you understand all the terms and agreements before you sign it. As long as you have an understanding of what you are agreeing to, you should be fine with a FHA Streamline Refi loan.