An FHA Streamline Refinance allows existing home owners with an FHA loan to refinance without an appraisal, asset and income documentation…thus “Streamline Refinance.” A credit report with mortgage payment history only, is required. There are other benefits as well.
The whole idea behind a Streamline Refinance is to allow an FHA borrower to take advantage of a lower rate (and in this case the lower mortgage insurance payment as well that’s effective Jan 26, 2015) without going through the entire process of a regular refinance.
The program also allows for unlimited Loan-To-Value ratio (LTV). Homeowners who currently owe more than the home is worth can still take advantage of refinancing to obtain lower interest rates, without regard to LTV.
Combining the lower interest rate with the reduction in the monthly mortgage insurance payment (coming on January 26, 2015) will result in monthly savings and a lower mortgage payment.
Because there is no appraisal, income or asset documentation required, the loan process is faster and easier for the borrower when compared to a regular refinance…usually a few weeks or less.
If you are in an FHA loan, please contact me for more details.