What is FHA Streamline Refinance?
More Irvine, Orange County, California borrowers are recognizing the benefits of FHA Streamline Refinances for their Irvine real estate. FHA Streamline simply means that refinancing your FHA loan is now easier and quicker to process because there is less paperwork required for a FHA Streamline Refi. FHA insures your refi mortgage the same as they have been doing on your current FHA mortgage. FHA wants to help borrowers reduce their monthly mortgage payments so there is less chance of them defaulting on their mortgage. That is why FHA Streamline Refinance has become more popular than ever. With a record number of mortgage defaults and foreclosures on Irvine homes the past few years, FHA wants to make it an easy process for you to refinance your mortgage and keep your home mortgage payments affordable.
Eligibility Requirements:
- Only current FHA mortgages qualify.
- No cash is permitted to be taken out of your refinance.
- You need a perfect payment history for the last year with no late payments.
- Your FHA mortgage loan must be current at the time of closing your refinance loan.
- The purpose of your FHA Refi must show a net tangible benefit savings such as refinancing to a lower interest rate to reduce your mortgage payment.
- Also, at least 210 days must have passed since your recent loan closed in order to qualify.
Few Reasons Why You Should Use FHA Streamline REFI
Here are just a few reasons why FHA Streamline is the number one refinance choice among Irvine homeowners:
- Income and employment do not need to be verified. Unemployed borrowers also qualify as long as you meet the other eligibility requirements.
- No credit score checks required. Your credit history is used to determine whether you qualify. You just have to make sure you have not missed any payments on your mortgage in the 12 months, and that all payments were made on time.
- No appraisal is required.
MIP Rate Increase
You do have to pay closing costs such as origination fees, title charges and escrow fees at closing. You must pay the mortgage insurance equal to 1% of the loan amount upfront at the closing. Your annual mortgage insurance payment (MIP) is added into your mortgage payment. After you have paid your loan for 60 months, you do not have to pay annual mortgage insurance any more. Effective April 18, 2011, the annual MIP is increasing so you may not want to wait if you are thinking about refinancing your FHA loan. Otherwise you will have to pay more. The new rates are as follows:
- 15-year loan, over 90% loan-to-value 0.50
- 15-year loan terms, under 90% loan-to-value 0.25
- 30-year loan terms, over 95% loan-to-value 1.15
- 30-year loan terms, under 95% loan-to-value 1.10
Apply For FHA Streamline
Right now is the perfect time to apply for a FHA Streamline Refinance. If you are interested in applying today or you want more information about Irvine mortgage rates or Orange County home mortgages, please contact LENDERS DIRECT FINANCIAL.
