Refinancing FHA Mortgage Deals That Mortgage Owners Can Rely On

PITTSFIELD, Mass. - July 23, 2013 - PRLog -- How many folks out there know how to refinance an FHA mortgage? Is it a different procedure than that used for other mortgage loans? Real-estate-yogi.com is here to provide insight into this topic, such as:

·         Reasons to Refinance

·         Streamline Refinance

·         Fee Reduction Initiative

·         Limited Lender Participation

Refinancing Benefits

While considering how to refinance an FHA mortgage loan, it’s a good idea to think about why one should do it.  The most popular reason to do this is to lower the payment. The process itself entails using the refinance loan to replace the original mortgage and then crafting a new mortgage with better terms than the first loan had.   Reducing the principal or the interest rate on the mortgage are two common changes to a loan. Through either of these actions, the cost of the mortgage is lowered.

Get Refinance FHA Mortgage Online Approval With Any Type Of Credit, Apply Now!!http://www.real-estate-yogi.com/Consultancy_form.html    

FHA Streamline Refinance

Be sure to understand the term “streamline refinance” before looking deeper into how to refinance an FHA mortgage. “Streamline refinance” refers to the underwriting the lender must provide and to the amount of documentation required. The loan must already be FHA insured, it has to be up to date, the refinance has to result in either a lower interest rate or principal, and it must reduce the monthly payment for the borrower. Additionally, there is no cash-out option for FHA refinancing. This definition should give one a very clear idea as to what he’s getting into when he applies for this product.

Reduction of Fees Initiative

In 2012, the Obama administration created an initiative to make it less expensive to refinance an FHA mortgage. Two of the fees inherent to this process have been reduced. The first one is the upfront mortgage insurance premium, which went from a full 1% to 0.01%. The other one is the annual mortgage insurance premium fee, which has been cut almost in half – to 0.55% from 1.15% of the loan balance. Both of these reductions make the loan payments more affordable.

Complete Assistance for Customers Getting FHA Mortgage Refinance, Free Consultation From real estate professional Experts Here!! http://www.real-estate-yogi.com/hm-fha-mortgage-refinance.html

Processing Lenders

In order to qualify for the reduced fees just discussed, one may have to go through his original lender, which may curtail some of his options. Seriously consider all of this information about how to refinance an FHA mortgage before beginning the process. Apparently, banks are not being very competitive when it comes to providing these refinances, causing slightly higher interest rates on them. Just beware of that should one continue on this path.

www.real-estate-yogi.com is a cost-free, highly respectable website whose mission is to provide current, accurate responses to consumers’ inquiries of property financing options. There is always knowledgeable staff available, so contact them at 1-800-987-1397 day or night for a free consultation.