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One of the more popular options for people with an FHA loan is the FHA streamline refinance program. With the streamline refinance, you can lower your interest rate and get a lower payment without having to re-qualify for a new loan.
FHA Streamline Refinance: No Appraisal Is Required
The main criteria for participating in the FHA Streamline refinance program are that you must live in the property and that you can’t have more than two, thirty day late payments on your mortgage in the last 12 months.
Assuming that you live in your house and that you have less than 2 thirty day late payments in the last 12 months you are eligible to participate in the FHA refinance streamline program and will probably need an appraisal unless you can qualify for the FHA streamline refinance without appraisal.
FHA Streamline Program: No Appraisal Required
The only way that you will need an appraisal when you go through the FHA streamline refinance is if your new total loan amount is higher than your original loan amount by 1.5% of your loan amount. If your original loan balance was 0,000 then your new total loan balance can’t be more than 1,500 otherwise FHA will require that you get a new appraisal done when you go through the Streamline refinance program .
FHA Streamline: How Much Are Closing Costs
There are costs involved with the FHA streamline refinancing program , but they can either be rolled into your loan or paid by your lender in exchange for a higher interest rate. This is also known as the FHA streamline refinance with no out of pocket closing costs or the FHA streamline program with no closing costs.
Most often, when a person participates in the FHA streamline program, they will still be in a FHA 30 year fixed rate loan with an interest rate that is lower according to the net tangible benefit test than what they had before.A reduced interest rate can easily mean saving hundreds of dollars each month and thousands over the life of your loan. Obviously, the FHA streamline program is popular only when interest rates have fallen to the point where it makes sense for people to streamline.