For homeowners who are current on the mortgage payment and are looking to save some money, the Federal Housing Administration (FHA) offers many insured loans to help people lower their interest rates and save money over the life of their loan. The FHA streamline refinance loan is an effective way to quickly and easily save money with reduced documentation compared to other refinance types, and without a home appraisal. If you own a home and are interested in lowering your monthly payment, an FHA loan may be the perfect choice for you.
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The FHA is a government run administration that works to help homebuyers find and purchase housing with little money down. These loans are quite popular because the FHA loans have low rates considering that they are higher risk due to a low down payment requirement. FHA insures each loan against loss, so that the lender is reimbursed in the case of a borrower defaulting on a loan.
The FHA extends purchase loans to homebuyers, even if they’ve purchased a home before. However, if you have already purchased a home, and it is deemed as adequate housing, you may not be able to use an FHA loan on a new purchase. This is because FHA wants to reserve its use to those who don’t currently have a home but would like to buy.
All homebuyers should shop around with different lenders and see who can offer them the best deal. Different lenders offer different rates and have varying fees, so checking availability with different lenders can save you even more in the long run. In addition, FHA loans can be issued with a down payment as little as 3.5%.
If you already own a home and have an FHA mortgage, FHA offers several refinancing options, including a streamline and a cash-out options. Both are great for homeowners who are interested in saving money over the life of their loan or who want to free up some money to be used to pay off other bills and expenses. With a streamline refinance, a home appraisal is not necessary. The other option, a cash out refinance, allows home owners to borrow money against the equity in their home and use the money to pay off other bills or expenses.
If you are interested in taking advantage of low home rates and affordable housing, consider looking into an FHA loan or an FHA refinance. Speak with a licensed professional who can help you discover how much you can save on your mortgage!