Refinancing is a good option in case a borrower is looking forward to benefits such as reducing his or her interest rate. However, it is a daunting task indeed since you need to pick the right refinancing program that will offer maximum benefits.
An FHA Streamline program is available for those who have loan programs that are insured by the FHA. If you’re unsure about whether to go for the FHA Streamline program, we’ve listed the following benefits below.
This home loan program takes less processing time, since some of the requirements are waived by the FHA. It requires less paperwork, which expedites your documentation time.
The fees of an FHA streamline loan are quite lower than a standard FHA loan. Even with a Streamline loan’s additional benefits, the interest rates are still similar to that of a FHA standard loan.
The FHA does not require you to conduct an appraisal of your property. You can also take out a refinance loan at the original price, thus saving a considerable amount of time and hassle.
Unlike a standard FHA loan, the streamline loan does not require mandatory repairs before closing the loan. In fact, the repair requirements are quite minimal.
It is possible to reduce your household expenses with the help of streamline loans, since refinancing a fixed FHA loan is only possible if it entails reduction in the periodic principal and interest amount. That said, your payments may increase if you switch an adjustable rate loan to fixed rate loan. In this case, you can escape the uncertainty of market fluctuations by switching to a fixed rate loan.
At Drew Mortgage Associates, one of the top mortgage lenders in Boston, we understand that your unique financial needs call for unique solutions. We’re more than just mortgage lenders, we act as our clients’ personal financial consultant, helping them shop for the best loan program available. We can play a pivotal role in your loan processing procedure, helping you along every step of the way.