A streamline refinance allows you to reduce your interest rate on your current FHA-insured loan with the possibility of little documentation being required. This could save you and the lender some valuable time and money.
If the new loan amount and closing costs do not exceed the original loan amount, your streamline refinance may be done without an appraisal. In turn if your loan amount is higher than the original loan amount, your streamline refinance will require an appraisal to determine there is sufficient equity in the property. Investment properties may only be refinanced without an appraisal and are not eligible for an ARM product.
Requirements for a FHA Streamline:
Mortgage being refinanced must already be an FHA-insured loan
You must be current on your mortgage payments
The refinance must result in a lower monthly payment (both principal and interest)
Cash-out is not available on a streamline refinance
AnnieMac Home Mortgage offers FHA jumbo fixed rate loans and adjustable rate loans:
With a fixed rate loan, your rate is fixed and your payment remains the same throughout the length of your loan (i.e. 30-years, 25-years, 20-years or 15-years). A fixed rate loan is an excellent choice if you plan to live in the home for many more years.
With an adjustable rate loan, your rate will adjust and your payments will fluctuate based on changes in the market. However, the rate and payment remains unchanged during the introductory period which would be 3 or 5 years. The initial rate for an adjustable rate mortgage is usually lower than that of a fixed rate loan. After the introductory period expires, the interest rate is subject to adjust at predetermined periods, usually every six months. The rate adjustments are based on market interest rates and the adjustment caps limit how much your interest can adjust in a specified period of time. An adjustable rate mortgage is a great choice if you don’t plan to own the home for a long period of time.
Loan to value ratios are dependent upon whether your loan is with or without an appraisal. Please call AnnieMac Home Mortgage to determine your maximum loan to value ratio.
FHA loan limits vary based on a variety of housing types and the state and county in which the property is located. Please call an AnnieMac Home Mortgage Licensed Mortgage Originator to discuss loan limits in your area.
FHA allows you to assume an existing FHA-insured loan. Or, if you are selling your home FHA allows a buyer to assume your FHA-insured loan. Assuming a loan can be very beneficial since the process is streamlined and less expensive compared to a new loan. Also, assuming a loan can result in a lower interest rate.