While applying for refinancing various factors are considered. They include the type of loan you should apply for, value of the property against which loan is applied, the amount of your down payment, and your credit score. If you are buying a home, or refinancing, your mortgage will be affected by the type of property you have. For buying a first home, rates are generally low. The rates are different if you currently own another home and they are highest for investment property.
An FHA Loan (Federal Housing Administration) has some advantages over conventional loans as they are insured by the government. They generally have more easy terms. They require lower down-payment and they are assumable loans. The maximum loan amount for an FHA loan depends on the county you live. These loans are country specific. FHA loans are government loans and almost 20 percent of residential mortgages constitute these loans in U.S.
If you are considering an FHA Streamline Refinance, you must consult a mortgage consultant as to what fits your needs better. Mostly, refinancing with an FHA loan is an excellent decision. At times, other conventional refinancing options may be a better choice for you. But it depends.
An FHA home loan may require lesser down payment and may be easier to qualify for compared to a conventional loan. A Streamline Refinance can be easily approved if you have been making your payments on time . Moreover,
1)there is no need for an appraisal unless you want to wrap the cost of closing into the loan.
2)Credit will not be checked for an FHA Streamline.
3)there is no income verification
4)there is no asset verification
5)there is no need of any cash for closing
Few things are needed in order to apply for FHA Streamline Refinance loan
1)Statement of your existing loan
2)Existing home insurance information
3)Proof of your Social Security number
4)Fill properly the form of FHA Streamline Refinance loan
5) you will need your current coupon or payment book for your home
Though an easy affair, FHA Streamline Refinance loan has some basic requirements. The lender will check with the current mortgage payments of say about last six months and your punctuality. One of the requirements of an FHA Streamline Refinance is that you reside in the home that you wish to refinance with the FHA Streamline Refinance. If you do not occupy the property, the refinance will be more difficult
This refinance is not originated by Government but only insured by it so if you are considering an FHA Streamline Refinance, shop around for a variety of different lenders. Make a search in the market and find the mortgage company that offers you the best of all plans. Weigh all the options, look out for all closing costs or the hidden costs before taking the final decision. Some companies will offer lower rates compared to others but then there might be hidden costs. Other companies may have a slightly higher rate, but may do a "no cost" refinance for you. It is best to weigh all options before choosing your lender.
About the Author:
Refinance is a key part of business development strategy used by Nazir on a daily basis. Proper use of this financial instrument depends very much on the quality of information upon which any refinancing decisions are based. For your better decisions, visit refinance now at http://www.123refinancenow.com
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