Showing posts from May, 2015

The New FHA Streamline Program

The FHA mortgage program is easily the most popular for the first time home buyer set. Why? Because the loan only requires a down payment of 3.50 percent making it easier to save up enough cash to close. FHA loans also carry a government guarantee which lenders appreciate as well. As long as the loan was approved using standard FHA guidelines, should the loan ever go into default, the lender is compensated for the loss. This guarantee is financed by mortgage insurance premiums paid by the borrower. And one other special feature of FHA loans applies to refinancing, called the FHA Streamline refinance and with recent changes to the mortgage insurance premiums, the program is even more attractive. It’s relatively easy to determine whether or not a refinance is a good move. By speaking with a loan officer, compare the amount of interest saved along with monthly payments with the amount of closing costs required on the loan. However, even if a refinance does make sense, without sufficient…

What is a VA IRRRL?

The military is the king of acronyms. The IRRRL moniker stands for the Interest Rate Reduction Refinance Loan, sometimes referred to as a VA streamline. When a borrower wants to refinance an existing VA loan, by far the streamline is the best option. Why? Because as the name implies, the process is “streamlined” with very little paperwork required other than a completed loan application.  As long as the veteran is refinancing an existing VA mortgage into a new one, the loan may qualify, and you don’t have to use the same lender you used last time.
The VA streamline mortgage requires no appraisal, no credit check and no income or employment documentation as long as the refinance “makes sense” by lowering your monthly payment, refinancing out of an ARM and into a fixed or changing your loan term. There are a few basic requirements but they’re relatively easy to meet:
You must be current on your mortgage and no more than one payment more than 30 days past the due date within the previou…

Is a Cash Out Refinance In Your Future?

Mortgage rates have remained below 4.00 percent for quite some time. In fact, according to Freddie Mac’s weekly mortgage rate survey, the last time the 30 year conforming rate was above 4.00 percent was November of last year. At the same time, property values have risen as well, providing additional equity to homeowners. This combination of low rates and higher property values can mean it might very well be an ideal time to lock in these low rates while at the same time pulling a little cash out during the process. Have you thought about a cash out refinance?
There are still millions of homeowners who could have benefited from lower rates but for whatever reason they couldn’t. Perhaps there wasn’t enough equity in the property or some other issue. If you’re one of those who have considered refinancing but weren’t quite sure if the time was right, it’s time to reconsider. Not only can you lower your monthly payment or shorten your loan term but taking cash out while refinancing can pr…