1.) Get Your Loan with No Points (85% of my customers do this)
2.) Have me Pay Your Mortgage Closing Costs for You. (For this particular program on larger loans this works quite well. On smaller loans I can pay some but not all of the costs.)
When I can pay all the Closing Costs this becomes a FREE Interest Rate Reduction!
You can do the math: The option you choose is based on how long you intend to stay in the home and in the loan!
The FHA Streamline Refinance without appraisal will never generate cash out but you will receive a lower payment for years to come and skip a month before the new loan begins.
If you have equity in your home, we can look at a FHA cash out refinance which allows up to 85% financing of your home. A FHA rate and term refinance (with appraisal) allows for 97.5% financing of the value of your home.
This loan is only available to existing FHA customers
If you are Upside Down on Your Home, We Can Still Do This Loan!
The FHA Streamline Refinance is a great loan because it provides what every mortgage customer wants
Every borrower who currently has an FHA mortgage should periodically take a look at the possibility of doing and FHA Streamline Refinance. Even if we are only lowering the rate a little, there is still a substantial benefit to the customer due to reduced costs and in some cases no closing costs! If I lower your rate .5% and pay all the closing costs, you have still lowered your payment for life and it didn't cost you anything. If you have any doubts, please give a call and I will email you an estimate.
There is no cash out or debt consolidation with this loan.
The FHA Streamline Refinance is ideal for existing FHA Customers who want:
- No Appraisal * (O.k for customers who are upside down on value)
- No Income verification ( just proof of work history with a 660 middle credit score or better)
- Your mortgage history must me on time
- Skip a month's payment
- Old escrow money comes back (but you will need to set up a new account for the new loan)
- A Pro-Rated amount of your existing mortgage insurance premium will be credited to the new loan
- It has to be a rate/term refinance, no cash out here
- If you have a second mortgage, we need to show no large draws within the last year otherwise the underwriter will want to call this a cash out refinance
FHA requires us to lower your payment at least .5%. With the new changes in FHA mortgage insurance premiums we need to calculate the total change between Principle, Interest, Taxes and the new monthly mortgage insurance premium.The new structure of FHA mortgage insurance is that more money is collected on a monthly basis and less money is collected up front and financed into the loan.
Here are some articles that I wrote for Huliq.com
regarding the FHA Streamline refinance
FHA Streamline Refinance Without Appraisal 5/26/2011
I have written before for Huliq.com that there is a very simple rule of thumb that consumers can use to calculate if mortgage rates will go up or come down. As a rule of thumb, a good day on the stock market is bad for mortgage interest rates and a bad day on the stock market is good for interest rates. The concept behind this is in general that lack of demand will cause an improvement in prices. It is like any other commodity; the lower the price the more people will be interested.
This is what is going on right now with regards to mortgage rates. Not so much that we have had bad days on the stock market but in general there is overall lack of demand for mortgage applications.
Part of the reason for this is that potential mortgage customers have the perception that it is impossible to get a mortgage these days. That is not so. Where the typical loan application for FHA requires a 660 middle score and 3.5% down, we still have alternative mortgage programs that can accommodate a borrower with a middle credit score of 600 with three trade lines paid on time for one year.
Current FHA customers should be looking at the FHA Streamline Refinance without appraisal right now. It doesn’t matter how under water you are on your home, if you choose to lower your loan amount one dollar you can refinance your mortgage without an appraisal and lower your monthly payment. In some cases we can even pay closing costs for you. Since there is no appraisal required your closing costs are lower right from the start.
FHA will continue to be the bread and butter mortgage program as we plod forward in the years ahead. Fannie Mae and Freddie Mac are slowly becoming more expensive and will eventually close up shop. Some believe in as little as 5-6 years. Local banks will fill the gap and provide local financing which used to be a premise for establishing a bank in the first place.
The down side of FHA is the monthly mortgage insurance which nobody likes but the upside is very limited risk. I always tell my customers, keep your money in your pocket for a rainy day. FHA does that with the 3.5% down payment or the streamline refinance.
If your home is worth $150,000 and you owe $180,000 you can still lower that monthly payment and wait out this housing situation with an FHA Streamline Refinance without appraisal. In time the housing crunch will slowly working itself out in places like Florida where I am a banker.
The Streamline FHA Refinance - Here is another article for HULIQ that talks about the no closing cost mortgage refinance
Providing service in the mortgage business means ensuring a smooth and easy process and providing “absolute red carpet treatment” for the customer. Half of the mortgage person’s job is finding the customer through marketing and the other half is guiding them through the loan process hopefully making for a happy experience. We are always looking for ways to make the process of getting a mortgage easier because ultimately that will reflect positively on us and hopefully lead to more business. Today, I thought it would be a good idea to talk about a loan program that is truly a smooth and easy program and is still available in today’s mortgage world. This program is the Streamline FHA refinance without an appraisal.
The streamline FHA refinance without an appraisal is when we refinance an existing FHA customer and place them back into a new FHA loan. Even if the borrower is only taking their interest rate down 1%, a smart borrower should consider this loan because there are a few less closing costs associated with this loan. The streamline refinance is relatively easy because there is less documentation than your typical FHA loan. We still have a lot of paperwork but there is no appraisal, no proof of income, no proof of assets and no credit report. The application still has to reflect correct names and dates of employment as well as the details of the transaction.
There are a few key ingredients necessary for a streamline FHA refinance. The new mortgage has to less of a loan amount than the old mortgage. The mortgage history has to be paid on time and there is no cash out to the borrowers at closing. This loan allows for the loan officer to pay closing costs if the cash to close is tight. He or she can structure the transaction a little differently to make it work for the borrower’s bottom line. For example, if the prevailing FHA interest rate is 5%, the loan officer can provide 5.25% and pay $1500 in closing costs to help the borrower avoid writing a check at closing. Just like the way we can look at a no closing cost loan in the conventional world, the loan officer can pay closing costs to make the break-even point less.
The FHA streamline refinance helps customers who may be upside down on their home value still improve their situation because there is no appraisal requirement. So customers who have been sitting on the fence with rates in the sixes should look at this loan opportunity.
Email is firstname.lastname@example.org.