Refinancing FHA To A Conventional Mortgage To Eliminate MIP

This Article Is About Refinancing FHA To A Conventional Mortgage To Eliminate MIP

There are many reasons to refinance your mortgage loan.

  • Refinancing from an FHA mortgage into a conventional loan is a very common practice
  • This is a great opportunity to stop paying mortgage insurance and lower your monthly mortgage obligation
  • This time will go down in history with some of the lowest interest rates ever seen
  • Considering it was not out of the ordinary to have a 15% interest rate on your mortgage in the 1980s, seeing rates in the 2 and 3 percent is crazy
  • In this blog, we will detail some advantages of refinancing your mortgage loan from an FHA loan to a conventional mortgage and explain the refinance process with Gustan Cho Associates

Refinancing FHA To A Conventional Mortgage With A Lender With No Overlays

What is an FHA refinancing to a conventional mortgage with a lender without overlays

Just like purchasing a home, many lenders have LENDER OVERLAYS on their refinance loan programs.

  • The good news is Gustan Cho Associates offer conventional refinance mortgage loans based on FREDDIE MAC  and FANNIE MAE guidelines only
  • No additional overlays
  • We are experts in mortgage lending including all refinance options available
  • Our loan officers will go over numerous refinance options with you
  • We are available seven days a week to help you with your mortgage needs

For questions about your specific refinance transaction, please call Mike Gracz on 630-659-7644 or email [email protected]

Benefits Of Refinancing FHA To A Conventional Mortgage

Why is refinancing into a conventional loan a good idea?

  • We have seen property values rise over the past few years, helping many Americans drop their mortgage insurance premiums
  • If your house has appreciated in value, and you are now at the 80% loan to value or less threshold, refinancing to a conventional loan is a great idea
  • You will get rid of mortgage insurance premiums
  • Saving you thousands over the life of the loan

And in today’s low rate environment, you should save even more money than usual.

The Refinance Mortgage Process

Applying for a refinance with Gustan Cho Associates is an easy process.

  • Even during this chaotic mortgage market and mini refinance boom, refinancing your home is a simple process
  • Your first step is to call Mike Gracz on 630-659-7644
  • Mike will detail your refinance options and make sure completing this transaction will have a financial benefit
  • Mike will then pair you with a licensed loan officer in your state

It is important to discuss all refinancing goals with your loan officer.

Benefits Of Cash-Out Refinance 

What are the benefits of cash-out refinancing

There are numerous different ways to refinance your property.

  • Sometimes it is in your best interest to take cash out
  • Utilizing a portion of your equity to pay off other consumer debt or complete a project around the house
  • There are times where it is better to complete a rate and term refinance to lower your overall payments on your property
  • With these historically low interest rates, thousands of Americans are saving money on their home loans

This is a great time to take advantage.

Documents Required To Start The Refinance Mortgage Process

With modern technology, the refinance process has never been easier. After you speak with Mike Gracz, you will be sent an application link. Upon completion of the application link you will be required to upload income and asset documentation. Below is what you can expect to upload:

  • Last 30 Days of Pay Stubs
  • Last Two Years Tax Returns – not always required
  • Last Two Years W2 or 1099s
  • Current Mortgage Statement
  • Homeowners Insurance Policy
  • Driver’s License

Once your loan officer has the required documentation, they can get to work for you.

Refinancing FHA To A Conventional Mortgage: The Best Refinance Options

The licensed loan officer will prepare refinance options available to you based on your credit and equity position.

  • You will formulate a plan that will best fit your financial goal
  • After the application process, you will sign a loan disclosure package and start the process
  • After you sign your initial disclosures, the mortgage processing team will order all required verifications and get your file ready for the underwriter
  • During this time, an appraisal may need to be completed

As your file moves through the underwriting department, they will let us know if any further documentation is needed to close you refinance transaction.

Appraisal Waive On Conventional Loans

Which means abandoning the valuation of conventional loans

When financing into a conventional mortgage, it is possible to get an appraisal waiver.

  • Based on your credit profile, documented assets, and equity position, you may be granted a waiver
  • This will significantly speed up your refinance transaction
  • We no longer need an appraiser to schedule the appointment and complete the report
  • It is possible to get an appraisal waiver from Fannie Mae, Freddie Mac, or both

If you were in the market to refinance your property, please reach out to Gustan Cho Associates today. We are experts mortgage financing and will offer you highly competitive refinance options. We can be reached directly on 630-659-7644 or via email at [email protected] We look forward to hearing from you and saving you money on your mortgage.

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