A homeowner has a home with FHA financing on it. The rate is a bit higher than the going rate, but it just seems like a hassle to start all the paperwork to refinance.
If that sounds like you, then this article is a must-read.You should consider a Streamline FHA refinance for these 5 reasons.
Let’s jump right in:
- No Closing Costs is Easy: You can pay the closing costs and get a slightly lower rate. But why? If you pay no closing costs, and the rate falls, isn’t that a good thing? You win.
- No Appraisal is Necessary: Worried that your home may be under water? Then don’t waste the money on an appraisal that might not help. The only downside to an FHA refinance without an appraisal is that you then cannot roll closing costs into the new loan. Therefore, refer to #1 above.
- Small savings over time really add up: How often do I hear someone look at a Good Faith Estimate where they will be saving $150 per month on their mortgage, and they comment, “It’s so little, it’s hardly worth it.” Not so. That $150 is $1800/year. If you stay in the home another 10 years that’s $18,000. And what if you invested that savings and it compounded over time…
- Qualifying is easy: A minimal 620 credit score, having paid the mortgage on time during the past year, and verifying employment is all that it takes to qualify for the best rate the market has to offer today.
- It’s fast: Some people have visions of piles of paperwork and gathering mountains of documents. Not so. One hour of dedicated time to sit down and sign papers and gather some docs, and we will be off and running working on your approval. Wow, that’s an hourly rate of pay I can get excited about!
So whether you want to save money monthly and pay less of your hard-earned money to the bank, consider refinancing with an FHA streamline loan.
You have 5 good reasons to do so.