What Is The Benefit Of Refinancing?
There are other reasons why homeowners need refinancing on their current mortgage loan besides just refinancing so they can have a lower interest rate and save money. Although the main reason is to refinance your current high interest mortgage loan into a lower interest mortgage loan, some homeowners need to refinance their mortgage loans to get a non-occupant co-borrower out of the mortgage not, get an ex-spouse off the note of the mortgage loan due to a divorce, or change mortgage loan programs such as FHA loan into conventional loan.
FHA Streamline Refinance Mortgage
If you currently have a FHA loan and had it for at least six months, you can qualify for a FHA streamline refinance mortgage where no appraisal is required, no income verification is required, and no credit score is required. This special program is offered by Gustan Cho and his Associates for mortgage loan borrowers in most of the 50 states through The Money Store. All closing costs can be rolled into your new FHA streamline refinance mortgage loan. You can have had recent late payments and derogatory credit in the past 12 months and you will still get approved. The only requirement is that you need to have been timely on your mortgage payment for the past 12 months. No late payments with your housing payment.
Refinancing Your FHA Loan To Conventional Loan
Real estate prices have literally skyrocketed in Illinois, Florida, California, Washington, Georgia, Texas, Michigan, Oregon, North Carolina, South Carolina, Minnesota, Kentucky, Tennessee, Nevada, New Jersey, Pennsylvania, Indiana, and Washington as well as the rest of the country. For example, a client just called me last week wanting to see if it would make sense for him to refinance his Florida home that he purchased last year for $171,000 with a FHA Loan. After researching comparable properties in his area, similar and like properties are now selling for $250,000. This homeowner can qualify for a 80% loan to value conventional loan where he not only gets cash back at closing but he now does not need to pay the hefty monthly FHA mortgage insurance premium after he refinances his current FHA Loan to a Conventional Loan. There are hundreds and thousands of homeowners who have recently purchased their homes in the past few years with a FHA Loan that do not realize how much their home prices appreciated and where they can refinance their current FHA Loan to a Conventional Loan and avoid paying the super high hefty FHA monthly mortgage insurance premium. Home values in California have had double digit appreciation year after year since 2010.
Cash Out Refinance Mortgage
Due to the spike and consistent appreciation of real estate prices in most of the United States, many homeowners are taking advantage of the double digit annual appreciation of their homes by refinancing their homes and doing a cash-out refinance mortgage. You can do a cash-out refinance mortgage on your home six months after purchasing a home with a conventional loan. The maximum loan to value allowed on a conventional loan refinance mortgage loan is 80% LTV. With FHA loan, you can do a rate and term refinance mortgage six months after a home purchase. You need to wait 12 months after your home purchase to do a cash-out FHA refinance mortgage loan. The maximum loan to value on a cash-out refinance mortgage loan is 85%.
Taking Out Co-borrower Off Mortgage By Refinancing
If you have a non-occupant co-borrower that you need to remove from your mortgage note or have an ex-spouse who demands to have his or her name off the mortgage note, you can do so by refinancing your mortgage loan into a new mortgage loan relieving the co-borrower or other borrowers off the new mortgage note.
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