Streamline refinancing was launched to accelerate the home refinancing procedure. It is a really good refinancing option for those who want to enjoy benefits of low interest rates and ambiguity of adjustable rate mortgage.
FHA Streamline Refinance requires no credit qualifications, no appraisal reports and even offers record low rates. People are also not required to provide any information about qualifying debt ratio or income verification proof. The best aspect of FHA Streamline Refinance is that it can be carried out in fast and easy manner without much hassle and with minimalistic paperwork as compared to a normal refinance scheme.
FHA Streamline Refinance helps to reduce the rate of interest on an existing FHA home loan. It can also be used to convert the adjustable rate mortgage of an existing FHA into a fixed rate one. The only condition to be fulfilled in order to apply for Streamline Refinance is that applicants ought to have paid the last 12 mortgage amounts on time.
Given below are the key features and benefits of Streamline Refinance
- Does not require any appraisal report
- No need to calculate income or DTI ratios
- No need for minimum credit scores
- The lender is responsible for escrow/impound account payment
- Applicants can skip one mortgage payment
- A lender fee is reduced considerably.
People who do not want to opt for Streamline Refinance can choose Short Refinance with the option of principal reduction. Under this scheme, property owners can refinance their existing mortgage or LTV and turn it into a standard FHA mortgage in accordance with the current market value of the property. However, the lenders are required to take a take a short payoff for an amount needed to for closing costs which will be added to attain 97.75% of the property’s current value.
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