Refinance FAQ

Refinance FAQ

Refinance FAQ And Refinance Programs

There are many refinance mortgage loan programs such as HARP refinance mortgage loans, Reverse Mortgages, FHA streamline refinance loans, FHA 203k streamline refinance loans, VA streamline refinance loans, FHA cash-out refinance loans, USDA refinance loans, USDA streamline mortgage refinance loans, Conventional refinance mortgage loans, Jumbo refinance loans, Jumbo cash-out refinance loans, condotel unit refinance loans, and non-warrantable refinance loans.

FHA Refinance FAQ

On January 26, 2015, FHA has reduced the annual FHA mortgage insurance premium from 1.35% to 0.85%.  Homeowners who have purchased their homes in the past several years can take advantage of refinancing their current mortgage loans to a FHA refinance mortgage.  With FHA rates being at an all time low and the reduced FHA mortgage insurance premium, homeowners can save hundreds of dollars per year and tens of thousands over the course of their FHA loan.  Contact us for an analysis on how much you can save by exploring refinancing with a FHA refinance mortgage.

FHA Cash Out Refinance FAQ

Many homeowners has purchased their home right after the 2008 real estate and financial meltdown at the low of the real estate market.  Home buyers who have purchased their homes from 2009 and forward have gotten their homes at rock bottom prices and many home buyers who purchased during that time have seen their home values appreciate 20% or more.  Some homeowners, especially in Illinois, Florida, and California enjoyed appreciation as much as 50%.  Homeowners with equity can explore doing a FHA cash out refinance mortgage.  A homeowner can do a cash out FHA refinance mortgage loan up to a 85% loan to value.

FHA Streamline Refinance

Homeowners with a current FHA insured mortgage loan can do a FHA Streamline Refinance Mortgage with no appraisal required, no income verification, and no credit score required.  The FHA Streamline Refinance is so simple and fast tracked that most FHA Streamline Refinance Mortgage Loans can close in as quick as three weeks depending on how fast the mortgage loan borrowers submits his or her conditions in to the mortgage loan processor and into the hands of the underwriter for review. The are  no credit score requirement FHA Streamline Refinance Program enables homeowners whose credit scores have deteriorated since the purchase of their homes.  It does not matter what your credit scores are and whether or not you have recent late payments, recent collection accounts, recent charge offs, or even auto repossessions or other derogatory credit in the past 12 months.  The only requirement the mortgage lender requires is that you have been timely on your mortgage payments the past 12 months.  A one time 30 day late payment on your mortgage payment is allowed.  A new appraisal is not required.  If you have high debt to income ratios, it will not be taken into account because no income verification is required.  If you do have high credit scores, we can take that into account because higher credit scores borrowers will get rewarded with lower mortgage rates.

Refinancing Your Current Loan To A FHA 203k Loan

If you are a homeowner with a home in need of repairs, you can explore the option of refinancing your current mortgage loan, whether it is a conventional loan, FHA loan, VA loan, USDA loan, to a FHA 203k refinance mortgage loan where the mortgage lender pays off your current home loan and gives you a new loan with rehab budget.  There are two types of FHA 203k Loans.  The first is a FHA 203k Streamline which the maximum budget for repairs is $35,000.  You can do any types of repairs that is non-structural such as kitchen and bathroom remodeling, basement remodeling, attic remodeling, new floors, new paint, new windows, new roof, new exterior, mechanicals such as updating electric, plumbing, and HVAC, and millwork.  You cannot do a room addition, second floor addition, or structural work with a FHA 203k Streamline mortgage loan.  The second type of FHA 203k loan is the Standard Full FHA 203k mortgage loan where structural work is permitted and there is no limit on your construction budget as long as you have comparables after the work has been completed.  With a standard full FHA 203k Loan, you can do room additions, second floor additions and do structural changes to your home.  You can also do a complete tear down and build on your existing foundation.

Refinance FAQ: Refinancing Your FHA Loan To Conventional Loan

If your home has appreciated in value by 20% or more and you have a FHA Loan, you can refinance your FHA loan to a conventional loan and avoid paying the pricey annual FHA mortgage insurance premium.  As mentioned earlier, many homeowners do not realize how much their homes have appreciated in the past few years.  There are many areas in California, Florida, and Illinois where home values have sky rocketed anywhere between 20% to 50%.  Even if your home has not appreciated 20%, conventional mortgage lenders now offer Lender Paid Mortgage Insurance, which is also known as LPMI, where no mortgage insurance is required on conventional mortgage loan borrowers.  97% loan to value is required to qualify for a standard conventional mortgage loan.

Refinance FAQ: Cash Out Conventional Loans

Homeowners who need cash can do a cash out refinance mortgage with a conventional loan.  Maximum loan to value on a cash out conventional loan is 80% LTV.  Many homeowners who have homes that have appreciated in the past several years have more than enough equity that they can qualify for a cash out refinance mortgage loan.