FHA Mortgage Refinance Options

 FHA mortgage refinancing offers benefits for current mortgage debtors who are seeking to complete a refinance of their existing real estate mortgage. An FHA mortgage refinance may also benefit you even if you do not currently have a FHA mortgage.

FHA Cash Out Refinance: A Cash out refinance with FHA allows mortgage applicants to borrower a higher loan to value than any other mortgage program. With an FHA mortgage refinance current homeowners can Cash equity built up in their homes up to 95% of the homes FHA appraised value to spend how they please.

FHA Refinance to Consolidate Debt: High interest credit cards and other High interest debt can be consolidated into one low monthly mortgage payment with an FHA debt consolidation refinance.

FHA Refinance to Lower Mortgage Payments: Homeowners with higher interest rate home loans including adjustable rate mortgage can use an FHA refinance to lower your monthly housing obligation. And, for homeowners with a 15 year mortgage can refinance into a 30 or 40 year fixed rate mortgage to lower the monthly payments.

FHA Streamline Refinance: FHA streamline refinancing is perfect for homeowners that currently have an FHA mortgage who want to reduce their rate and payments. With an FHA streamline refinance homeowners can refinance their mortgage payments with no credit check and no appraisal. The only FHA condition is that you have to be current on your FHA mortgage.

FHA Refinance Chapter 13: Homeowners that have enough equity in their home and are currently in a chapter 13 repayment plan can refinance to consolidate monthly credit obligations into one low monthly mortgage payment.

Have Refinancing Questions? Fill out a Quick Response form or (Apply Now).

FHA down payment, interest rates, payments rates and FHA mortgage refinance programs guidelines and minimum credit  score requirements are subject to change without notice and are not guaranteed due to fluctuating mortgage market conditions.

What is an FHA Mortgage Refinance?

When a owner obtains a new first FHA mortgage on his or her home, the homeowner has undergone a FHA refinance. Simply put, think of an FHA home refinance as replacing  an old first mortgage for a new first FHA mortgage. But with FHA refinancing,  qualifying for the new loan  is much easier because FHA refinancing is NOT credit score driven. FHA home loans for refinance are  approved on a common sense approach to lending rather than the common credit score driven approach. In addition an FHA refinance and allows homeowners  to refinance up to 97.75% of the homes appraised value.

To refinance a home, the homeowner must apply for a new FHA mortgage. During the application process, the home will undergo a new FHA appraisal to determine its value, and the homeowners credit file will be reviewed to determine the borrowers last 12 month payment history. The FHA mortgage lender will also order a title report to search for any other liens or encumbrances that may appear. Assuming all these items are less than the homes appraised value and can be paid off with the FHA refinance will be approved.

Once the FHA refinance is approved, the homeowner will meet typically at the  title company to sign the new promissory note and Florida mortgage. The proceeds of the new FHA mortgage refinance loan will be used to pay off the old first mortgage as well as any additional mortgages and liens on the property. Accordingly, the only mortgage showing on the home after the refinance will be the new FHA loan itself. 

Homeowners frequently seek to FHA refinance their home when interest rates fall below the rate they had on their mortgage when they first bought their  home. For example, if a homeowner had a 30-year fixed mortgage at 8% and a loan of $100,000.00, it would be wise to seek an FHA refinance if the interest rates fell to 6%. The savings in a an FHA refinance  situation would be $134.00 per month. Over the life of the loan, the mortgage applicants savings could reach a total of $48,240.00. If the FHA refinance was for $200,000.00, the monthly savings would be $268.00, an almost $100,000.00 savings over the life of the FHA refinance. Accordingly, when determining if it is worthwhile to refinance the  home, the homeowner should weigh out the long term savings against the costs involved in the FHA  refinance and the length of time the Florida homeowner intends to stay at the  home to insure that the FHA Mortgage  refinance is worthwhile.

Costs typically involved in a  FHA mortgage refinance include: points, document preparation fees, tax service fees, title expenses, appraisal fees, and other FHA refinance  costs. Of these, the "points" are typically the most expensive. Using the $100,000 FHA refinance example again, for a refinanced loan with one point (1%), the homeowner would pay a fee of $1,000.00 to secure the refinance. If two points (2%) are being paid, then the  homeowner would pay $2,000.
 

Have Refinancing Questions? Fill out a Quick Response form or (Apply Now).