If a sudden reversal of financial fortunes has occurred, making it difficult to afford the current FHA mortgage payment, a homeowner should look into how to refinance an FHA mortgage.
Pittsfield, MA -- (SBWIRE) -- 08/14/2013 -- Here to offer some insight into this topic is Real-estate-yogi.com, the most knowledgeable source of property financing solutions, including:
- FHA Streamline Refinance
- Lower-Cost FHA Refinance
- FHA Cash-Out Refinancing
- Qualifying for Refinancing of an FHA Mortgage
Streamline Mortgage Refinance
There are some choices when it comes to how to refinance one’s FHA mortgage. The most popular option is the Streamline refinance, which is offered to those homeowners who currently have an FHA-insured mortgage loan. The characteristic unique to this type of refinance is the lack of demand for a home appraisal. Instead, the FHA allows one to use what he paid for the home as its current value, no matter what it may be worth right now. This refinance works similarly to any other loan. It can have a fixed or adjustable rate and comes with a 15-30 year term.
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Less Expensive FHA Refinance
Last year, President Obama announced a program that makes it less costly to refinance an FHA mortgage. However, to obtain the lower costs, one might have to stay with his original lender. Most major banks have declared that they will only supply this refinance to current customers who have an FHA mortgage. The program aims to lower interest rates on existing mortgages, making the monthly payment lower as well.
Cash-Out Refinancing, FHA-Style
Another response to how to refinance an FHA mortgage is cash-out refinancing. With this type of refinance, the original mortgage is paid off and a new one is drawn up for more than what is owed. The new loan will also have a lower interest rate than the original did. It may behoove one to allow equity to accumulate in his home for many years before applying for this kind of refinance, as it is based on that amount.
Qualifications for FHA Refinance
Here’s how to refinance an FHA mortgage: Go to an FHA-approved lender and apply. However, it will be handy to know some of the qualifications for this process. For example, the FHA seldom refinances a loan that did not originate with one of its lenders, meaning that the applicant must already have an FHA loan. One must have his mortgage for at least one year before refinancing it. Other data can be found on the FHA website.
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