In this blog, we will cover and discuss homeowners doing a fast-track low-interest FHA streamline refinance in Alabama for homeowners with a current FHA loan. Homeowners can qualify for an FHA streamline refinance in Alabama 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.

No Cost FHA Streamline Refinance in Alabama

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 lenders have introduced “no-cost” and low-cost refinancing on FHA streamline refinance in Alabama. This minimizes or completely eliminates 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. In this article, we will discuss and cover FHA streamline refinance in Alabama.

Net Tangible Benefit With FHA Streamline Refinance in Alabama

One of the requirements with FHA Streamline Refinance in Alabama 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. There are strict HUD guidelines on refinancing with an 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 refinancing. Homeowners need to realize that there are closing costs involved with a refinance. Closing costs consist of tax stamps, appraisal, origination fees, and attorney’s fees if there will be an attorney involved in the refinancing 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 by advising you on whether or not it will be worthwhile for you to refinance.

FHA Streamline Refinance in Alabama Mortgage Process

Alabama homeowners who are planning on staying in their current home for several years or more, it might be worthwhile 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 Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We have no lender overlays on government and conventional loans. On FHA Streamline Refinance Mortgages, there is no appraisal required, no credit required, and no income verification required. Most FHA Streamline Refinance in Alabama take less than 30 days to close.

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