An FHA streamline refinance lets you skip right over the biggest hurdle to getting an FHA loan – the appraisal. Only borrowers who meet certain conditions can get a break when refinancing a home purchase loan that was originally backed by the Federal Housing Administration. The FHA Streamline refinance program allows borrowers to lower their current mortgage without a full credit check, but you need to have paid your mortgage on time for the last 12 months!
The added documentation needed for a credit qualifying streamline could result in a lower interest rate.
This program is only available for homeowners who already have an FHA loan. To find the best deal, compare quotes from several different FHA streamline refinance lenders.
You will pay a fresh upfront mortgage-insurance premium and continue shelling out monthly premium payments.
If you are worried about paying the upfront costs for an FHA streamline loan, you can look for a no-cost refinance. However, you will be charged a higher interest rate. Looking into your long-term savings will help decide if this program is for you.
Lower interest rates and low margins with no lender or origination fees.