Like many other government backed mortgage programs the FHA streamline refinance program guidelines has been modified in hopes of stimulating the sluggish housing market. With the announcement that in many markets that prices have stabilized and are even on the rise, now maybe the time to refinance before interest rates go up!  The latest effort involves the reduction in mortgage insurance rates by as much as 99% for those who choose to refinance through this program. Though the streamline program does not allow for a homeowner to take cash out of the refinance, with today’s low FHA streamline finance rates the savings every month can be significant.

The streamline process is like its name implies, a reduced paper work and underwriting process though not a process without cost and an option which has been offered by the FHA since the early ‘80’s.

The basic requirements of a streamline refinance are:

• Mortgage must already be FHA insured
• The mortgage cannot be delinquent
• The refinance must result in a lower payment though is some cases it may also be used to finance out of an ARM (Adjustable Rate Mortgage)
• Homeowner cannot take cash from the transaction

Streamline refinances can be offered in several ways; the lender offers it at “no cost” by charging a higher than market rate than if the mortgagee paid the closing costs in cash, market rates with closing cost paid by borrower but the lenders may not include the closing costs in the new mortgage. For investment properties which are not owner occupied as a principal residence, the FHA only allows a refinance without an appraisal.  The complete details can be found on the HUD website under FHA Streamline Refinance.

If you find all of this confusing the LoanexFastCash.com has mortgage experts who can help to explain the whole process while guiding you every step of the way. If you are interested in saving money on a monthly basis as well as over the life of your mortgage loan contact the experts at the LoanexFastCash by filling out our simple online application. As your online financial superstore we’re here to help with all your mortgage refinance questions and needs.