Okay, admittedly, government programs to help homeowners have not been all they were cracked up to be. Until now. HUD had increased the cost of mortgage insurance (MI) on new FHA loans so much that it just did not make sense to refinance. The MI cost so offset the lower rate that for many FHA streamline refinance Nevada homeowners any savings was eaten up by the increased MI costs.
Is the 5% rule perfect? No, in fact, like most rules it has limitations and imperfections. It doesn't account for cost. Some may be denied for an FHA Streamline Refinance with absolutely no costs at all because it only reduces the payment by 4.99%. In contrast, others may be approved for a loan with exorbitant closing costs that saves 5.01%.It doesn't allow for shortening the term of the mortgage. Some homeowners would likely see a real benefit in reducing their 30 year loan to a 15 year mortgage with a very modest increase to their payment, but not with the modern streamline program.
It doesn't account for those with FHA ARMs (Adjustable Rate Mortgages) to be able to lock in a fixed rate. For example, a homeowner with a 4.5% adjustable rate due to adjust this year may not be able to streamline into a 4.5%, or 4.25% fixed rate because they won't meet the 5% payment reduction threshold.
You must have an existing FHA mortgage loan on your home right now. You must have taken that FHA loan out prior to June 1, 2009. You must be current with your mortgage payments for the past 12 months. Oh, and just like any FHA loan, you need to be employed and have at least a 620 credit score, of course. If you meet all of those requirements, then you're in. Why not spend 30 minutes completing loan application and gathering a few documents? If that 30 minutes of initial work saves you some $4k per year, that's a pretty good return on your time invested.
Mortgage brokers are required to be licensed in each state they conduct business. Clients must sign a contract authorizing brokers to act as their agent. Mortgage brokerage fees are charged in addition to loan application, origination, and closing settlement fees. It is a great idea to look around and compare mortgage brokers and refinancing fees. It is best to calculate all costs before going through with your refinance. If you are looking to refinance check out a FHA streamline Nevada refinance loan today.
Is the 5% rule perfect? No, in fact, like most rules it has limitations and imperfections. It doesn't account for cost. Some may be denied for an FHA Streamline Refinance with absolutely no costs at all because it only reduces the payment by 4.99%. In contrast, others may be approved for a loan with exorbitant closing costs that saves 5.01%.It doesn't allow for shortening the term of the mortgage. Some homeowners would likely see a real benefit in reducing their 30 year loan to a 15 year mortgage with a very modest increase to their payment, but not with the modern streamline program.
It doesn't account for those with FHA ARMs (Adjustable Rate Mortgages) to be able to lock in a fixed rate. For example, a homeowner with a 4.5% adjustable rate due to adjust this year may not be able to streamline into a 4.5%, or 4.25% fixed rate because they won't meet the 5% payment reduction threshold.
You must have an existing FHA mortgage loan on your home right now. You must have taken that FHA loan out prior to June 1, 2009. You must be current with your mortgage payments for the past 12 months. Oh, and just like any FHA loan, you need to be employed and have at least a 620 credit score, of course. If you meet all of those requirements, then you're in. Why not spend 30 minutes completing loan application and gathering a few documents? If that 30 minutes of initial work saves you some $4k per year, that's a pretty good return on your time invested.
Mortgage brokers are required to be licensed in each state they conduct business. Clients must sign a contract authorizing brokers to act as their agent. Mortgage brokerage fees are charged in addition to loan application, origination, and closing settlement fees. It is a great idea to look around and compare mortgage brokers and refinancing fees. It is best to calculate all costs before going through with your refinance. If you are looking to refinance check out a FHA streamline Nevada refinance loan today.
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Want to find out more about FHA Streamline Nevada, then visit James Kent's site on how to choose the best FHA Streamline Nevada Loan for your needs.
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