If you have owned your home for an extended period, you might be interested in refinancing your mortgage. And while this can help you to update your terms and reduce your monthly payments, it can come at a financial cost that includes a title search, appraisal, application fees and more. However, if you currently have an FHA loan, you may be able to bypass these requirements altogether. With an FHA streamline loan, you can get the refinancing you need without having to jump through all the hurdles.
When you work with the experts at BrightPath, you will get mortgage solutions that fit your budget and your plans for the future.
What is an FHA Streamline Loan?
An FHA streamline loan is a mortgage option that simplifies the refinancing process by waiving traditional requirements normally associated with other loan types. To be eligible for this loan, you must already have an FHA Loan.
The Advantages of an FHA Streamline Loan
Many homeowners with an existing FHA loan choose to pursue an FHA streamline loan refinance because of its many benefits.
- Improved mortgage terms. This kind of refinancing allows you to lower your monthly payments and interest rates.
- Fewer requirements. Unlike other mortgage types, there are less verification and documentation requirements, so it is a great option if you are unemployed or have a lower credit score.
- Quick process. Since you do not need to provide as many documents with an FHA streamline loan, the refinancing process can be complete in two to three weeks.
- Zero appraisal. With no appraisal requirements, you can use the original purchase price for your current home value even if it has depreciated since you bought it.
Qualifying for an FHA Streamline Loan
Besides having an FHA loan, there are additional qualifications you must meet to be eligible. Along with owning your property for a minimum of six months before your refinance, you must be current on your mortgage payments one year before applying. Also, your new loan cannot have a greater value than your current loan.
While an FHA streamline loan is ideal for reducing your monthly payments, it can come with a higher closing cost or higher interest rate depending on your situation. So, it is important to evaluate your fiscal circumstances to determine if it will actually save you money in the long run.
When You Should Consider It
If you are interested in paying off your FHA loan in a shorter period or would like to reduce your monthly payments, than an FHA streamline loan is the right option for you. Also, if you currently have an adjustable rate mortgage, refinancing allows you to switch to a fixed rate mortgage. So, this is also an ideal choice for lowering costs by providing you with the stability of a fixed mortgage payment.
The Experts at BrightPath Can Get You the Refinancing You Need
While making the decision to refinance can come with many questions and concerns, the experts at BrightPath will use their unparalleled knowledge to give you the advice and answers you need. When you work with BrightPath, you are guaranteed to get on the path to a better tomorrow.
Contact us today to schedule a consultation.
At BrightPath, we provide the right mortgage solutions that meet your needs.