If you’ve been on the fence about an FHA streamline refinance, then these reasons may help you figure out whether or not you should be refinancing your FHA loan through the FHA streamline refinance process.
Should the items on this list fit you, then take a look at our article on the FHA streamline refinance and think about contacting me to set up a call about your refinance situation.
Reason 1 - You Currently Have An FHA Loan.
This is the first requirement for being able to use the FHA streamline refinance process.
If your loan is a conventional loan, then you will be unable to get into the streamline refinance process offered by the FHA.
Of course, with a conventional loan, you will probably see that there are better ways for you to refinance and more options available to you.
Reason 2 - You Can Get Better Rates Now Than When You Got The Loan.
Rates are changing all the time.
If you’ve been checking the mortgage rates through my tool, then you might see that the rates are in your favor and lower than when you started your loan.
This means that it’s the perfect time for you to refinance and save some money.
If the rates aren’t going to save you any money, then you will find that your lender won’t even let you refinance your loan.
This is part of the FHA does to ensure that everything done is productive.
They don’t want a borrower to pay for a refinance and then not have made a significant change to their loan payments.
If you want to see what your mortgage rate could be, then use my tool to check out your rates.
Reason 3 - You Want More Money On Hand.
If everything is in your favor and you need more money in bank account, then this is the perfect reason to refinance.
Even with a conventional loan, this will likely be the reason that you are trying to refinance your loan.
Having more money in your pocket will mean that you can help your kid get through college, or pay for a car that you need.
Having more money on hand is a great reason to refinance and will help you achieve other goals while you’re paying off your perfect home.
Reason 4 - You Don’t Need The Hassle Of A Traditional Refinance.
With a streamline refinance, you spend a lot less time talking to people on the phone about what you’re trying to do.
A traditional refinance will usually require an appraisal, a credit check, and an employment check.
The hassle of this can really get in the way of you being able to do what you need to do.
While there is still a cost associated with refinancing, it involves slightly less since you won’t be having to deal with an appraisal as well.
With a streamline refinance, you don’t have to deal with the appraisal, a credit check, or even an employment check.
Your lender will look at the history that you have with paying the loan to see whether or not you are likely to pay for it in the future.
Not appraising the house can even be a benefit.
You haven’t to worry about if the house’s worth is lower than the loan was for in the first place.
Reason 5 - Your Credit Score Is In The Right Range.
While the credit range for an FHA loan in the first place can be really low, the credit score that makes the streamline refinance worth it is slightly different.
If your credit falls between 620 and 740, then this refinance might actually be perfect for you.
Your lender won’t be checking this, but it is a good range to keep in mind when you’re looking at other possible options.
Even if your credit is higher, you may find yourself tempted by the quickness of this process.
However, you should really do some research before you commit to refinancing this way or another way.
What do you think?
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