FHA Streamline Refinance With Bad Credit In Alabama

This BLOG On FHA Streamline Refinance With Bad Credit In Alabama Was Updated On April 30, 2017

Homeowners can now qualify for FHA Streamline Refinance With Bad Credit, no appraisal, no income verification PLUS NO CLOSING COSTS.

  • Borrowers can have very low credit scores and recent late payments on any credit tradelines with the exception of their current FHA Loan.
  • Traditionally, the decision on whether or not to refinance has meant balancing the savings of a lower monthly payment against the costs of refinancing.
  • But in recent years, many mortgage lenders have introduced “no cost” and low cost refinancing on FHA Streamline With Bad Credit that minimize or completely eliminate the out-of-pocket expenses of refinancing. (These refinancing packages compensate with a higher interest rate, or by including some of the costs in the amount that is financed.)

Net Tangible Benefit To Alabama Homeowners

One of the requirements with FHA Streamline Refinance With Bad Credit is that the homeowner needs to get a net tangible benefit in order for a loan officer to proceed with their FHA Streamline Refinance Mortgage.

  • Their are strict HUD guidelines on refinancing with a FHA Streamline where a borrower needs to save a certain amount from their existing mortgage.
  • With a standard full refinance mortgage loan, the most often cited rule of thumb is that the interest rate for the new mortgage must be about 2 percentage points below the rate of current mortgage for refinancing to make sense.
  • However, with the newer low and no cost refinancing programs, it can be worth your while to refinance to obtain a smaller reduction in interest rates.

How Long Will Homeowner Stay In Their Home?

How long you expect to stay in your home is also a factor to consider.

  • If you’ll be moving in a few years, the month to month savings may never add up to the costs that are involved in a refinancing.
  • Homeowners need to realize that there are closing costs involved with a refinance. 
  • Closing costs consists of tax stamps, appraisal, origination fees, attorney’s fees if there will be an attorney involved in the refinance, and title charges. 
  • Depending on the interest rate on your new refinance mortgage loan, it might take anywhere of several months to more than a year to recoup your refinance closing costs. 
  • Your mortgage broker will help you in advising you whether or not it will be worthwhile for you to refinance.

Refinance Mortgage

Alabama homeowners who are planning on staying in their current home for several years or more, it might be worth while to consider refinancing.

  • Alabama homeowners who are only planning on staying in their home for a short while might not be able to recoup refinance closing costs so refinancing may not be the best option for them.
  • They might be better off with paying the higher current home mortgage rates they are paying if they are not able to recoup closing costs. 

Alabama homeowners who have any questions and need a free credit evaluation to see if a refinance mortgage is beneficial, please contact us at USA Mortgage at 1-800-900-8569 or text us for faster response at 262-716-8151 or email us at gcho@usa-mortgage.com.

  • We have no lender overlays on government and conventional loans.
  • On FHA Streamline Refinance Mortgages, there are no appraisal required, no credit required, and no income verification required. 
  • Most FHA Streamline Refinance With Bad Credit take less than 30 days to close.

Gustan Cho NMLS ID 873293

www.gustancho.com

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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