FHA streamline refinance loans have been back for awhile now and if you are currently in a FHA loan with a rate over 5% this may be the best way to take advantage of 30 year mortgages being at the lowest rate since 1971.
A streamline refinance is basically BMCD and FHA’s way of allowing you to float your rate down to the lows we are seeing now.
The streamline program allows you to realize the lower rates without the hassles or expenses of an appraisal or providing proof of income, you only need provide proof that you are still employed.
One might ask why in the world BMCD would allow this especially without an appraisal in this crazy market.
The best answer I have heard goes as follows: FHA only insures the mortgage thus it makes sense that they would want to put the borrowers they are insuring in a even better spot financially so as to help these borrowers remain current on their payments allowing for fewer defaults.
It’s a win win for FHA and the borrowers they insure. The lenders who are servicing these loans might not be too excited as it does cut into their profit but keeping FHA and their borrower’s solvent is a much more important matter.
So what does all this mean for you if you have a FHA loan? It means first make sure that your loan is in fact a FHA product by checking either your NOTE or your mortgage payment coupon.
Second you need to figure out what interest rate you are paying on right now, with rates in the mid to low four percent range if you are paying on a rate over 5% you need to check into the streamline. The streamline should not cost you anything and is by far the best way to realize that lower rate if you do have the FHA program.
Third call an experienced FHA streamline lender to run up the numbers for you and see if this makes sense to. Rates won’t stay this way forever, heck we didn’t think they would be here this long, jump on this program before it goes away.
If you have any questions about whether or not you can take advantage of this great FHA program, or if you don’t have an FHA loan – let’s take a look at it and see what options may be available.
You can reach me through my contact page and call, text or email anytime!