Refinance to Get a Lower Rate with an FHA Streamline Refi
Borrowers who went into loan forbearance over COVID-19-related financial issues have several options for mortgage loan relief; some do not choose to go into loan forbearance but want rather to refinance their mortgages, get into a lower payment or interest rate, in order to reduce the financial pressure on their monthly budgets.
What options do FHA borrowers have if they don’t want to suspend their payments or are no longer able to suspend payments on their home loans because the deadline for the termination of that loan forbearance is looming?
The FHA Streamline Refinance loan is a mortgage that can help, especially in a time when mortgage rates in general are as low as they have been (historically speaking) in some time. FHA Streamline Refinance loans are for existing FHA mortgages only--non-FHA loans don’t qualify for Streamline Refi loans.
The FHA Streamline has features you will definitely want to learn more about if you are in the market to refinance your FHA mortgage:
- No FHA-required appraisal.
- No FHA-required credit check.
- No penalty for early payoff.
- In most cases the Streamline refinance must result in a benefit to the borrower such as a lower payment, lower interest rate, getting out of an adjustable rate loan, etc.
The FHA official site states the loan to be refinanced cannot be delinquent. That is a very important aspect to remember when considering your options. Don’t fall behind on your payments before you reach out to your FHA lender to make arrangements. If you are not worried about your ability to pay but definitely do want a lower rate or lower payment, contact your loan officer about the FHA Streamline Refinance option.
FHA Streamline Refinance loans have been available for many decades, so don’t make the mistake of thinking this option is only for pandemic relief or is tied to a specific type of mortgage loan relief need. Talk to a loan officer today about your ability to refinance and how it could benefit you.
Do What You Can to Avoid Foreclosure
Homes Financed With FHA Loans Must Be Owner Occupied
FHA Programs for First-Time Homebuyers
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