Refinancing with an FHA home loan can be a viable option for people with limited cash to put on a down payment, and even for those who have less than ideal credit scores. If you can find a home that the Federal Housing Administration approves for a mortgage, than you can save a lot of money and get yourself a very solid and stable fixed rate or adjustable rate home mortgage. Some things to consider when exploring FHA home refinance rates are:
- The down payment is usually just 3.5 percent in most cases. You most likely won't find something less than this unless you qualify for a Veteran's Administration or USDA rural housing loan. However, if your credit score is below 580 you must put down 10 percent.
- Lenders are more willing to work with people with less money if they are FHA approved because the government guarantees the mortgage. Shop among several FHA approved lending companies to get the best rate possible.
- This guarantee doesn't come free. You pay an upfront FHA refinance mortgage insurance premium as well as an annual premium.
- Remember to include closing costs for the total purchase of a home. They will add up to at least a few thousand dollars no matter what type of mortgage you get. You can finance closing costs as part of the loan however.
First Time Home Buyers
FHA loans are often excellent choices for first time home buyers mainly due to the fact that less is required for a down payment. It is not always so easy to find houses that qualify for FHA loans in the areas you are searching. Speak with real estate agents local to the area where you are looking to relocate.
Existing mortgage refinance options
For people with existing mortgages refinancing with FHA approval can often save thousands in the long run. If you are currently paying a high fixed rate mortgage you can lower your monthly payments by switching to a lower rate in this manner. This will increase your cash flow by refinancing an FHA mortgage to a longer repayment term.
It is also possible to lower monthly payments by switching from an adjustable rate mortgage to a fixed rate once you notice that interest rates have fallen. Then you can access the equity you have put into your home to make home improvements, consolidate your debts, or fund other areas in your life financially. The options are wide ranging with countless benefits.
Before you make the decision to apply for FHA mortgage refinancing you should speak with a professional and knowledgeable real estate expert. Although it isn't difficult to qualify for an FHA mortgage refinance program, you still need to find out if you are eligible. The Federal Housing Administration will want to know if there is a real benefit that results in lower payments for the homeowner. You will have needed to be up to date on your payments with a good history with at least six payments made on a current FHA mortgage. No late payments over the past six months. The new mortgage must lower the monthly payment by at least five percent.
Visit www.real-estate-yogi.com today and see what they have to say. They have access to real estate agencies anywhere in the country that are ready to help. Call them directly at 1-800-987-1397 for a free consultation.