Refinancing Your FHA Home Loan
Are you looking for a way to actually enjoy the benefits from the investments you have made into your property year after year? The way to do that is through a FHA refinancing loan. It is a way to tap into the equity that for years has gone unused, and in our world today who wouldn’t like a little extra money for those things you have been meaning to do? Make over your home, consolidate bills, put money into your children’s college fund, fix up your car, or even take a vacation, all these things can be achieved by choosing and FHA refinancing loan.
For those who use their homes as the principle place of residence check out these options to refinance!
First there is the appealing “streamline” refinancing, an option with less paper work and less hassle. Usually this option involves no appraisal. But in order to choose this option keep in mind:
- The mortgage has to be FHA-approved
- Cash cannot be withdrawn using this option
- Should be for the purpose of lowering monthly interest payments
- Mortgage payments must be current
- No verifications to apply
And then there are those that do involve the appraisal. The plus to this choice is the ability for the homeowner to receive cash from the equity. You will also need to have credit, employment, and income verifications.
FHA Streamline Refinancing is an easy and quick way to lower interest rates or lower your monthly payments. The qualifications are easy to meet and only a small amount of money is needed to refinance.
The other choice is the cash out method. This is where the homeowner will take out another mortgage more than the one they currently own, therefore paying off the current mortgage and using that equity to take out the larger loan. This allows a way to the equity so that that the homeowner can put the money to use in other investments.
Remember, as a homeowner, if you are choosing to refinance your mortgage, you should give it time to build up equity. If purchased one year before the refinance, the homeowner can refinance for up to eighty five percent of the appraised value!