Fha refinance Rates – Why You May Be Able to Save Money

Fha refinance Rates – Why You May Be Able to Save Money

Yes, you definitely can refinance an FHA mortgage, and there is a wide variety of FHA mortgage refinance choices available to meet your financial needs. Each individual type of refinancing has slightly varying criteria, but most all require similar basic qualifications. All loans must be current on their loan or tax-paid status. All income and expenses must be current as well. Income and expenses include: mortgage payment, principal, interest, and insurance premium. For many homeowners, their total debt is greater than their total income, and FHA refinance loan may be the only option to take care of closing costs.

Home buyers who are looking for affordable interest rates and flexible terms should consider information on FHA home loans. The Federal Housing Administration, or FHA, refinance mortgage loans made through HUD, the department of Housing and Urban Development, or their equivalent. To qualify for a government-guaranteed mortgage, the homeowner must pass all three of the following tests: he or she must own or occupy, the property for which the loan is being requested; he or she must reside in the property for which the loan is being requested; and he or she must maintain the property as his or her principal residence.

If you are a first time home buyer, you will need to fill out a standard FHA application, as all three of the above requirements apply. If you are a second time buyer, your FHA application will be different, as the criteria are different for that scenario.

FHA, or Federal Housing Administration, refinance mortgage loans that are made through HUD, the department of Housing and Urban Development, or their equivalent. To qualify for a government-guaranteed loan, the home owner must pass all three of the following tests: he or she must own or occupy, the property for which the loan is being requested; he or she must maintain the property as his or her principal residence; and he or she must maintain the property as his or her only income.

In order to qualify for a government loan, the borrowers must also meet other FHA qualification standards. Borrowers interested in this type of refinancing are encouraged to visit a lender offering such loans; however, there are several lenders in the marketplace offering these services.

There are a couple of reasons why FHA, or Federal Housing Administration, refinance mortgages. The primary reason is that borrowers can qualify for more affordable interest rates after an appraisal period has occurred. During this appraisal period, or “appraisal period,” the lender will verify and update the borrower’s data; and if the appraisal determines that the new loan’s interest rates are higher than what was previously offered, then the lender will adjust the loan’s interest rate.

Although the interest rate may jump as high as 4.5%, if the appraiser determines that the loan can be approved at this higher amount, borrowers will be able to save money on interest. There are many factors which contribute to an Fha refinance’s interest rates; these include the location of the borrower’s primary residence, any credit problems such as default accounts, the borrower’s employment history, current debt load, and expected future expenses.

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