FHA Refinance Information
If you have bought your home using an FHA loan, chances are that when interest rates are low, you are interested in learning more about the FHA refinance programs that are available for people with FHA loans. FHA refinance guidelines change from time to time, but the general types of FHA refinancing mostly don’t change. The two main different types of FHA refinance that someone can do are the FHA streamline refinance program and the FHA cash out refinance.
FHA Streamline Refinance
The FHA streamline refinance program is available to homeowners who currently have an FHA loan and want to lower their mortgage payment by getting a lower interest rate. The FHA streamline refinance is designed to allow those people who want a lower interest rate to refinance without all of the required documentation needed for a full-documentation refinance or when they originally got their FHA loan.
The FHA streamline program is administered by lenders who are approved FHA lenders and can underwrite FHA loans that are insured by the FHA insurance fund in the event of a default by the homeowner.
The FHA streamline program essentially lets the homeowner get a new (lower) interest rate and hence a new (lower) monthly mortgage payment by refinancing the loan from one loan that was insured by FHA against default into another loan that is also insured by FHA.
FHA Cash Out Refinance
For homeowners who currently have an FHA loan and want to convert some of the equity in their home into cash, the FHA cash out refinance is a great option. FHA guidelines currently allow a homeowner to get up to 85% of the equity in their home in the form of cash and the cash can be used for virtually any purpose. Popular reasons for doing a FHA cash out refinance include home improvements and consolidating all other debts into one monthly payment.
FHA Refinance Programs: Speak To Your Loan Officer
Regardless of what FHA refinance program you are interested in, you will want to speak with a loan officer at an FHA approved lender who can help you learn more about the FHA refinance options available today. From time to time, FHA will change the guidelines on FHA refinance programs or will introduce a new refinance program and by speaking with a loan officer at an FHA approved lender, you will ensure that you are getting the most up-to-date information available.