Home buyers are often drawn to the FHA mortgage program due to the low interest rates, low closing costs and generally attractive loan terms. However, there will come a time when many who have an FHA mortgage want to refinance. After all, refinancing a mortgage may allow you to tap into your home’s equity, obtain a lower interest rate, extend or shorten the loan term or achieve other goals you may have. While there are different loan programs that you can use to refinance, many are taking advantage of the FHA streamline refinance program.

What Is the Streamline Refinance Program?

This is a unique program that is ideal for many who have an FHA loan, and this includes those who are underwater with their home mortgage. This program is unique from others because there is not an appraisal requirement. Many other programs will offer a certain loan amount based on the current value of the home. When the value has declined since the purchase, it may not be possible to refinance with other loan programs. However, this program is well-suited for such situations, and this is regardless of the amount your home has declined in value.

The Loan Terms

While one of the key selling points relates to the fact that the FHA Streamline program does not require an appraisal, there are other selling points. This is a low closing cost option that can close quickly. In addition, you can choose from a fixed or adjustable rate, and the interest rates are very competitive. There are also 15 and 30-year terms available. Plus, the loan program does not have a prepayment penalty associated with it.

Many borrowers also appreciate the fact that the underwriting process is streamlined, and there is minimal documentation required. In fact, there is not an income or employment verification in place, so you will not have to worry about providing all of the paperwork that would need to provide for other loan programs.

If you have an FHA loan currently, you may be ready to refinance. Regardless of what your current goals are for refinancing your existing mortgage, it is smart to learn more about the FHA Streamline mortgage. With how easy it is to qualify and how attractive the loan terms are, this may be the loan program that you have been searching for. You can speak with a home loan specialist about the qualification requirements and loan terms that you may qualify for under this program.

Refinancing your home mortgage can be beneficial for you for a number of reasons. As a homeowner, you may have spoken with some of your friends and neighbors who have already refinanced, and you may have heard about some of the different benefits associated with refinancing your mortgage. For example, refinancing can result in a lower mortgage payment, the ability to pay your mortgage off more quickly, reduced interest charges and other benefits. If you have never gone through this process yourself, however, you may not know what to expect with the refinancing process.

Determining if Refinancing Will Benefit You

The actual benefits that you would receive by refinancing will be unique to your situation. Refinancing is a process that results in replacing your existing mortgage with a new mortgage. This will establish your home financing with a new interest rate, a new term and a different mortgage payment. In some cases, the new loan amount that you qualify for will be higher than the amount that you owe, and you may be able to obtain cash out of the refinancing process because of this. One of the best ways to determine what the specific benefits are for refinancing your mortgage is to speak with a mortgage professional directly.

How to Get Started

Refinancing a home mortgage is very similar to applying for the original home mortgage when you purchased the home. However, additional information will be requested regarding your current mortgage, and some information may also be requested about the original purchase. You generally will need to provide tax returns, bank statements and other related financial information to complete the process.

However, initially, you may only be required to fill out a loan application and to agree to have your credit report pulled. This initial step will help a mortgage professional to determine if you may qualify for a refinance mortgage and what the estimated loan terms may be. Generally, this process can be completed quickly.

When you close on your refinance mortgage, the closing will typically take place in a title agency or another similar venue. The title or escrow agent will facilitate the process of using the funds from the new mortgage to pay off the balance on the existing mortgage and to complete any other required steps on your behalf. While there are some steps that need to be taken for you to refinance your mortgage, the process is typically rather easy when you work with the right mortgage professional. You can request more information about refinancing your mortgage when you speak with a loan specialist.