FHA Streamline - Easy Way To Refinance Your FHA Mortgages

FHA Streamline - Easy Way To Refinance Your FHA Mortgages

Since you already have an FHA loan, you know all about the insurance premiums and that it's easier to qualify for one than it is to qualify for a conventional loan and about mortgage insurance premiums. Chances are, though, that you don't know about the latest changes that FHA's made to the Streamline Refinance Program, changes that take it back to its origin, make it... streamlined again (see HUD mortgage statement from February 14, 2011 ). There is no income verification, no employment verification, no credit score and history verification. As far as FHA is concerned, you can have no job, no savings, and a credit score of 10 and they'd still refinance your mortgage under this program.

Before I go tell you why they're doing it (it has nothing to do with the goodness of their hearts), let me mention that the FHA Streamline Refinance can be done without a new appraisal. Even if half of your home's value's gone. Yes, your mortgage loan could be $300,000 and your house could be worth only $150,00 and you can still and you can still refinance your mortgage loan under this program.

Under two conditions: you've paid your mortgage on time the past 12 months. The definition of 'net benefit?'

1. new mortgage is a fixed-rate mortgage, the old one was an Adjustable Rate Mortgage (ARM)

2. your new monthly mortgage payments (principal, interest and mortgage payment premiums) are going to be 5% lower.

FHA Streamline Refinance can only replace an FHA-insured mortgage loan with another FHA-insured mortgage loan. Remember that the new payments must be 5% smaller. In other words, FHA is letting you let them reduce their risk. I don't know how many fewer people will default on their FHA-insured mortgage loans if their monthly payments are at least 5% lower but I know that it's going to be fewer.

Truly, the FHA Streamline Refinance Program is a great thing. Truly, it's a pity all lenders aren't doing something like it with all their mortgage loans. It really is a win-win situation. Of course, some of them have been winning like crazy lately, so they might not care. Of course, some of them haven't. You'd expect at least those to follow suit. But this is digressing from what's important for you, namely, reducing your monthly payments and, so, making your life easier.

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