Do you want to enjoy or need some of the money that you have invested in your home over the years or do you need to reduce your mortgage payment? Refinance loans allows homeowners to get some of the equity out of their homes and also can be used to reduce their mortgage payments. FHA Mortgage Refinance can help you to lower your mortgage payment on your FHA loan and get you a lower interest rate.
To start the refinancing process you will need additional information. You will find below 3 options of FHA home refinancing you should consider.
The FHA Cash Out Refinance Option
This option may be great for you if your home has increased in value since you have purchased the home.
The FHA Cash Out Refinance option will let you refinance your existing mortgage loan by receiving another mortgage loan for more than you currently owe. The old mortgage is paid off and you will receive the difference between the old loan balance and the amount of the new mortgage in cash, thus the name of the option (Cash Out Refinance).
This option allows you to use the built up equity to do whatever you want to do with it.
FHA Streamline Mortgage Refinance
This option is known as a streamlined refinance mortgage because you can reduce the interest rate on your current mortgage loan much faster and easier. Most of time this option does not require an appraisal.
FHA Streamline Mortgage Refinance requires less paperwork for the lender thus reducing the cost and the time required to close. A couple of requirements for this option are the original home mortgage loan must be a FHA home loan and the refinancing has to reduce your monthly interest payments.
Although you will benefit from the FHA Streamline Mortgage Refinance by reducing your monthly payments you can not receive cash back at closing like you can with the FHA Cash Out Refinance Option.
Refinancing A Non-FHA Loan To A FHA Loan Mortgage
If you do not currently have a FHA loan you can refinance it to a FHA Loan Mortgage but you can not use the FHA Streamline Mortgage Refinance option.
If your current mortgage is a conventional mortgage you can refinance it up to 96.5 LTV (Loan to Value). The Loan-to-Value ratio is the amount of the first mortgage expressed in a percentage to the current appraised value of your home.
This could allow for a sizable mortgage loan if you meet all of the requirements.
Using FHA refinancing to refinance your home mortgage loan is usually easier and quicker than using other types of refinancing.
FHA Mortgage Refinance can allow the homeowners use the equity in their home for many things such as help paying for their children college education, or take a dream vacation, or just to pay off higher interest debts. The best place to find more information about FHA Refinance Loans is the Internet. You can find many websites that will help you to decide the best option for you!