The FHA Streamline Refinance program has been around for years. But over the past few months, with the renewed popularity in the FHA program by First Time Home Buyers, the Streamline Refinance program has made a big come back.
Why the Sudden Interest in the FHA Streamline Refinance?
Only 6 months ago FHA home buyers were getting FHA loans with interest rates ranging from 6% to as high as 7%. When they bought their home it was likely a lengthy process where the lender asked for a pile of income and asset documentation. This may scare some FHA borrowers away from ever wanting to refinance their loan. But the FHA Streamline Refinance is called a “Streamline” for a reason.Very little information is required from the borrower.
Why Does HUD offer this program? It sounds too good be true.
In most cases the borrower pays no closing costs. FHA offers this program because they want a borrower of a government loan to be able to take advantage of lower rates when they become available. So how easy is it to lower your rate with an FHA Streamline Refi?
- There is No Appraisal required.
- No Income Documentation
- No Asset documentation
- No Closing Costs.
- Only a partially completed loan application.
The MIP on the new FHA loan is adjusted, with a prorated refund of the Mortgage Insurance Refund coming from the current loan. Other than that, this is the easiest refinance a borrower will ever experience.
How Much Savings Can a Streamline Provide?
On a $300,000 loan, a .5% rate drop would save close to $100 per month. A 1% drop would save $200 per month. And remember, this is an easy, no appraisal or qualifying, refinance.
What’s the First Step?
The first step is to contact a FHA Streamline Refinance Specialist, who will be able to provide an accurate estimate of the monthly savings. An FHA Streamline Refinance does not make sense for everyone, but it only takes a few minutes to find out. It’s worth the 5 minutes to check it out. $100 a month can add up quickly.
Contact us for your Orange County FHA Mortgage:
To contact an FHA Streamline Refinance Specialist, please contact Tim Storm at 877.786-4243 x 7 | tstorm (at) ochomebuyerloans.com
*Trust One Mortgage Corporation is licensed and supervised by the California Department of Real Estate (“DRE”), License # 01087829
We are not the FHA, VA, USDA, HUD or any other government organization. The content on this blog is intended for information purposes only. 
