Many people have used an FHA loan to buy a house in the last few years and chances are that the interest rate they are currently at is much higher than the current FHA interest rate. If you find that your current interest rate is higher than the current interest rate, chances are that the best way to get a lower rate is to refinance using the FHA streamline refinance program.
If you live in Arizona or California and have bought your home in the last few years, there is a chance that you also owe more on your mortgage than your house is currently worth.
But if you participate in the FHA streamline refinance program, the good news is that you can still refinance if you participate in the FHA streamline without appraisal refinance program.
Last fall, HUD changed the guidelines on the FHA streamline no appraisal program and now if you are going to do an FHA streamline without appraisal, you can’t finance your closing costs into the loan. I thought this meant that FHA streamlines were pretty much dead — until interest rates went lower than I thought possible.
The changes to the FHA streamline program mean that anyone who is interested in an FHA streamline will need to bring their closing costs to close unless interest rates have dropped to the point where a lender will give a slightly higher rate in exchange for covering some of the closing costs.
And interest rates have dropped to historic low levels.
Which means that you can now do a FHA streamline refinance without an appraisal and have it still make sense financially.
So if you are currently in an FHA loan and have an interest rate that is higher than what the current interest rate is, the good news is that the FHA streamline can help you even if you currently owe more on your mortgage than your house is worth.
Be sure to ask your loan officer about the FHA streamline without appraisal program.
- More information about the Arizona FHA streamline refinance program
- More information about the California FHA streamline refinance program
