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FHA Streamline Refinance

Get Pre-Qualified Today & Shop with Confidence!

FHA Streamline Refinance

Get Pre-Qualified Today
& Shop with Confidence!

The Lowdown on FHA Streamline…

One of the requirements of the FHA Streamline Refinance is that there must be a “net tangible benefit” to the borrower. This prevents unscrupulous mortgage professionals from encouraging a homeowner to refinance repeatedly even if there is no sound financial reason to do so.

A few of the ways a new loan can benefit the borrower include:

  • Reduce the interest rate of a fixed rate loan by 0.5 percent or more. (If paying off both a first mortgage and second mortgage or home equity line of credit with the new loan it is the combined interest rate that is examined).
  • Move from an adjustable rate loan to a fixed rate, with an interest rate not more than 2 percent higher.
  • Shorten the amortization period. (Move from a 30 year fixed rate mortgage to a 15 or 10 year loan term).

The Lowdown on
FHA Streamline…

One of the requirements of the FHA Streamline Refinance is that there must be a “net tangible benefit” to the borrower. This prevents unscrupulous mortgage professionals from encouraging a homeowner to refinance repeatedly even if there is no sound financial reason to do so.

A few of the ways a new loan can benefit the borrower include:

  • Reduce the interest rate of a fixed rate loan by 0.5 percent or more. (If paying off both a first mortgage and second mortgage or home equity line of credit with the new loan it is the combined interest rate that is examined).
  • Move from an adjustable rate loan to a fixed rate, with an interest rate not more than 2 percent higher.
  • Shorten the amortization period. (Move from a 30 year fixed rate mortgage to a 15 or 10 year loan term).

Our FHA Streamline Refinance Loan Rates Are Low & Our Process is Quick

The FHA offers a specialty loan program that provides homeowners with a simplified, low cost refinancing option when moving from one FHA loan into a new one. The FHA Streamline Refinance requires much less documentation when compared to a standard purchase or refinance mortgage, has a less rigorous underwriting process, and offers reduced fees as well.

By removing many of the barriers to refinancing, the goal is to encourage more mortgage holders to take advantage of lower mortgage rates, to move from an adjustable rate loan to the long term security of a fixed rate mortgage, or other beneficial changes. This will likely make it even easier for consumers to stay current with their mortgage payments, potentially free up funds for other purposes, and lead to greater financial stability and successful home ownership for many years to come.

Our FHA Streamline
Refi Loan Rates
Are Low & Our
Process is Quick

The FHA offers a specialty loan program that provides homeowners with a simplified, low cost refinancing option when moving from one FHA loan into a new one. The FHA Streamline Refinance requires much less documentation when compared to a standard purchase or refinance mortgage, has a less rigorous underwriting process, and offers reduced fees as well.

By removing many of the barriers to refinancing, the goal is to encourage more mortgage holders to take advantage of lower mortgage rates, to move from an adjustable rate loan to the long term security of a fixed rate mortgage, or other beneficial changes. This will likely make it even easier for consumers to stay current with their mortgage payments, potentially free up funds for other purposes, and lead to greater financial stability and successful home ownership for many years to come.

What is required for an FHA Streamline Refinance?

In order to qualify for the FHA Streamline homeowners must already have an FHA loan in place on the subject property. Some of the additional requirements include:

  • At least six payments must have been made on the FHA loan that will be refinanced.
  • A minimum of six full months must have passed since the due date of the first payment on the FHA loan that will be refinanced.
  • The FHA loan to be refinanced must have closed at least 210 days earlier.
  • The borrower cannot be behind on payments on the current loan.
  • There must be a “net tangible benefit” to the borrower to complete the transaction.

What is required
for an
FHA
Streamline Refi?

In order to qualify for the FHA Streamline homeowners must already have an FHA loan in place on the subject property. Some of the additional requirements include:

  • At least six payments must have been made on the FHA loan that will be refinanced.
  • A minimum of six full months must have passed since the due date of the first payment on the FHA loan that will be refinanced.
  • The FHA loan to be refinanced must have closed at least 210 days earlier.
  • The borrower cannot be behind on payments on the current loan.
  • There must be a “net tangible benefit” to the borrower to complete the transaction.

In which scenarios is the FHA Streamline Refinance useful?

A homeowner with an existing FHA loan that has a higher rate than current mortgage rates may be in a perfect situation to benefit from the Streamline Refinance option. It may be possible for them to lower their monthly payment while avoiding some of the work involved in a traditional mortgage transaction and with lower fees.

A lower mortgage payment can free up funds for other purposes such as a short term emergency fund, long term savings for retirement or education, other investments, or simple to make it easier to pay for monthly expenses.

Homeowners can also choose to continue to pay the higher payment they are used to, with the additional amount going to principal each month. Over time, even a small additional payment can greatly reduce the amount of interest paid over the life of the loan, and even shave months or years off of the repayment term.

What if clients are interested in taking advantage of the lower mortgage rate but don’t want to start over with a 30 year mortgage after making several years of mortgage payments? A shorter term loan with a 25, 20, or 15 year repayment period could be a great fit. It might mean additional interest savings as well, as shorter term mortgages often come with lower interest rates when compared to 30 year loans.

Even if current interest rates aren’t dramatically lower than that of a homeowner’s existing mortgage they may still have reason to refinance. For example, if nearing the end of the fixed rate period on an adjustable rate loan they may choose to refinance into a fixed rate mortgage, rather than subject themselves to the uncertainty of potential rate increases in the future.

In which scenarios
are an FHA
Streamline 
useful?

A homeowner with an existing FHA loan that has a higher rate than current mortgage rates may be in a perfect situation to benefit from the Streamline Refinance option. It may be possible for them to lower their monthly payment while avoiding some of the work involved in a traditional mortgage transaction and with lower fees.

A lower mortgage payment can free up funds for other purposes such as a short term emergency fund, long term savings for retirement or education, other investments, or simple to make it easier to pay for monthly expenses.

Homeowners can also choose to continue to pay the higher payment they are used to, with the additional amount going to principal each month. Over time, even a small additional payment can greatly reduce the amount of interest paid over the life of the loan, and even shave months or years off of the repayment term.

What if clients are interested in taking advantage of the lower mortgage rate but don’t want to start over with a 30 year mortgage after making several years of mortgage payments? A shorter term loan with a 25, 20, or 15 year repayment period could be a great fit. It might mean additional interest savings as well, as shorter term mortgages often come with lower interest rates when compared to 30 year loans.

Even if current interest rates aren’t dramatically lower than that of a homeowner’s existing mortgage they may still have reason to refinance. For example, if nearing the end of the fixed rate period on an adjustable rate loan they may choose to refinance into a fixed rate mortgage, rather than subject themselves to the uncertainty of potential rate increases in the future.

Get Your FREE Loan Quote Now!

Get Your FREE
Loan Quote Now!

Whether you’re buying a new home, refinancing, looking for a cash-out, or just have questions about the process, our Elite Team of Mortgage Professionals will help you find the right mortgage solution!

Whether you’re buying a new home, refinancing, looking for a cash-out, or just have questions about the process, our Elite Team of Mortgage Professionals will help you find the right mortgage solution!

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