I recently learned about all the advantages of FHA mortgage refinance options. I feel that it’s necessary to share this information with everyone who is in the market for a house or feels the time is right to refinance on their current mortgage. There are many buyers out there right now and few sellers, so it’s possible you should consider holding on to your home and checking out the FHA mortgage refinance rates available in your area of the currently. Perhaps with so many buyers out there you can raise the value of your home due to the competition, but it isn’t going to hurt you to hold on for a while and watch that value rise even more. Here are some aspects of FHA mortgage refinancing that will come in handy while you wait for the market to open up in the future.
- There are two options when refinancing an FHA mortgage. You can refinance into another FHA loan, or refinance into a conventional loan. Decide which product is right for you.
- There are less requirements and qualifications attached to your credit score. This means you can have a lower score and still refinance!
- Unlike a conventional loan however you can’t take cash out of your equity. This is something to consider if you ever come into money problems in the future.
Many people have low credit scores right now and own a home. The tough economy has hurt credit scores across the board, but an FHA mortgage refinance doesn't necessarily require a sterling report. Don’t let that stop you from exploring your options. Once you have identified a suitable loan product you will want to shop for the best rate available. You can often find great websites where you can compare loan rates across the country. Keep track of who is offering the best deals.
The loan application
The next step is completing the loan application process. If you are simply refinancing into another FHA loan you can just contact your current lender. In this case you will ask for a streamlined FHA loan. There will be much less paperwork involved and the funds from the loan will come sooner. Remember to have the proper documents with you such as pay stubs and bank statements if you are refinancing to a conventional loan.
Then you should ask for a list of the closing costs associated. If you refinance with you current lender you might not have any cost refinances. However if you refinance with a new lender you should negotiate a closing cost. It is often possible to negotiate fees associated with an attorney or the application process.
The finished product
Finally the day comes when you receive the closing documents. Review them carefully. The lender will contact you with this information once it has been approved. Together you should make sure that the interest rates, the principal of the loan and the monthly payments are all correct.
If you need expert guidance on FHA loans and other mortgage options visit www.real-estate-yogi.com. You can also call them for a free consultation with one of their experts located around the country by calling 1-800-987-1397.