FHA Streamline loans allow you to reduce the interest rate on your current home loan more quickly and with far less paperwork than conventional mortgage refinances require.
Refinancing your existing FHA-insured loan allows you to take advantage of today’s low interest rates and reduce your monthly expenses.
Reducing your interest rate one percentage point on a $200,000 mortgage loan would save you over $1400 a year while reducing your interest rate by two percentage points would save you over $2900 a year.
FHA Streamline loans require minimal paperwork. An FHA Streamline refinance uses your original FHA home loan paperwork so there’s no income verification, employment verification or underwriting fees and a home re-appraisal is only required under certain circumstances. This allows borrowers who owe more on their homes than they are worth to refinance.
Borrowers can choose to pay their “closing cost” fees in cash to obtain the lowest possible interest rates or take advantage of a “no cost” streamline refinance at a higher rate of interest.
You also have the option of increasing or decreasing the term of your existing loan. Reducing the term of your loan builds equity faster, while increasing the term of your loan makes your payments more affordable.