Lower Your Payments on the Existing FHA Loan Easily

There is an easy as well as a fast way to lower your monthly loan payments on the existing FHA loan. It does not require money for the closing costs and does not require an appraisal. It does not even require any credit qualifying, if you have been making the existing FHA payments timely.

FHA Streamline Refinance Loan

This option is already present in your current mortgage. One of the features offered is the borrower can obtain a lower rate mortgage without reappraising his property. One just needs to contact any approved FHA lender, in order to get the details as well as see how it can reduce the monthly loan payments.

Although the loan process is new, it is abbreviated, as the appraisal is not required. One does not have to complete the sections related to income, debts as well as assets, in the application form. The entire process is completed in less than thirty days.

One does not get any cash back from the streamline refinance loan. This program is specifically designed to reduce the monthly loan payments. This is an advantage provided to the loan payer in order to make it easier for him to pay his loan payments in the future.  The new loan amount would be less than the original loan amount.  The upfront loan insurance that has to be paid on the mortgage is subtracted.

If a person has an FHA loan on the investment property, he is eligible only for refinancing the existing loan balance. The prepaid as well as the closing costs would be paid out of pocket. One cannot add these costs to the new loan.

Appraisal

The appraisal can be done while processing the loan. If these formulas do not pencil out, one has to establish a higher current value in order to avoid extra expenses at escrow. This gives more flexibility if the property has appreciated. With a constant increase in the loan rates in the past few years, many people having existing FHA ARM loan are concerned that the annual rate adjustments could rise. One can utilize the FHA streamline program in order to switch to fixed rate FHA loan until the time new rates are not more than the current loan rate.

Many people have purchased homes over the years by getting FHA loans. While purchasing the house, the FHA loan offers many features that make it an attractive option when compared to other loans.

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