What does streamline mortgage mean

Skip to main content. Office of Hospital Facilities Why Choose ? Overview of Lean Why Choose ? Home Ownership Refinancing A Home. To qualify for an FHA streamline refinance the borrower must show there will be a net tangible benefit to doing so. The program offers a lower-hassle way to refinance the mortgage, including not requiring an appraisal. Streamline refinancing cuts out some of the paperwork and costs for both lenders and consumers.

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First, do your research to make sure you understand what the offer entails. Decide if a refinance is really worth it for you, and check in with other lenders to see if you can find a better deal. Provided you meet the basic requirements for an FHA Streamline, this loan is an excellent way to refinance into a lower rate and monthly payment with less hassle than a traditional refi. Or maybe you were contacted by a lender offering ultra—low refinance rates and big monthly savings.

While it might sound too good to be true, the FHA Streamline Refinance is a perfectly legit refinance loan backed by the Federal Housing Administration. It can offer a simplified, low—doc application process and below—market rates.

Some lenders will require a credit check even for a non-credit qualifying loan. Check with your mortgage lender about its policies. An FHA Streamline is one of the easiest refinance programs to qualify for, with minimum documentation and no home appraisal required. The added costs of interest compounded over an additional number of years can significantly outweigh the advantages of a lower monthly payment.

While the FHA allows borrowers to increase their loan term by up to 12 years, it has to be offset by a rate reduction. One potential downside to an FHA streamline refinance: You'll pay a fresh upfront mortgage-insurance premium and continue shelling out monthly premium payments.

The upfront premium is 1. In an FHA streamline refinance, you can wrap the upfront mortgage insurance premium — but no other closing costs — into a higher loan amount as a part of the refinance. Don't forget, the "net tangible benefit" requirement means the numbers have to work in your favor, all costs considered.

Calculating your long-term savings can help you decide whether an FHA streamline refinance is right for you. The FHA offers several refinancing options , including a k refinance for renovations and an FHA cash-out refinance , so it may take a bit of research and some number-crunching to figure out which best meets your needs now and down the road.

What is the FHA streamline program? FHA streamline guidelines. Looking to refinance your mortgage?