I just got done helping a woman streamline their FHA home loan. It was a very easy loan and very beneficial for our client. When speaking with her about the possibility of a streamline refinance, she asked me a few questions that I though everyone considering this type of refinance would probably like to know.

The first thing that she asked me was “How would I know if an FHA Streamline be good for me?” That was an excellent question and one that we often get from our clients.

The answer is very simple! If you can reduce your interest rate by at least 1/2%, an FHA Streamline is for you! Most of the time, we can reduce it even more than 1/2%, but that is a good guideline to go by.

The next question that she asked me was about her interest rate and what it might be. Well, this gets a little harder to pin point, unlike traditional 30 year mortgages. There are a ton of factors that go into calculating an streamline interest rate.

  • How long you have had your current loan
  • What is the payoff amount
  • If you want to skip some payments
  • If you want to tie your closing costs into your loan

These are just a few of the major things that will influence your interest rate on a streamline refinance.

When speaking to clients who are interested in this kind of mortgage, I usually just tell them that it is wise to take the 1003 loan application, pull together their documentation, get everything to the processor, then all of us get on the phone and pound out exactly what YOU want from this loan. Then we can tweak things to get your rate down at least 1/2% or lower. Once we do that, we can lock in the rate and finalize things.

FHA Streamlines are very easy and fast to take care of and when you tie in your closing costs, you have nothing to lose, only gain by reducing your mortgage payment and increasing the amount of money you keep in your bank account.

To get started on your streamline, click here now!

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