Articles Tagged With: FHA Refi

March 25, 2021

Uses For An FHA Cash-Out Refinance Loan

If you are thinking about applying for a cash-out refinance loan, you likely have some ideas about what you want to use the money for. FHA Cash-Out refinance loans allow the homeowner to convert equity built up in the home and take it out in cash. The amount of cash back is determined once the original loan and the closing costs of the new loan have been dealt paid. How to use the money? Some want an FHA cash-out refi to do home improvements with no restrictions on how the cash gets used. These loans don’t have the same restrictions on how the funds are used when you compare them to the FHA 203(k) Rehabilitation loan which allows a refinance and improvements to be made using loan funds. But | more...

March 16, 2021

Pre-Purchase Home Loan Advice

By Bruce Reichstein

Looking for a home loan that’s affordable and doesn’t require 20% down? The FHA loan program has something for you. Some are surprised to learn that FHA mortgages are not limited to those in financial need like certain USDA mortgages, and they are not restricted to first-time home buyers. FHA Loan Options Are Diverse You can buy much more than a typical suburban home. Options include getting a condo unit with an FHA mortgage, building a home on your own lot from the ground up using an FHA One-Time Close construction loan, or you can refinance your existing mortgage. That mortgage can be an FHA or non-FHA mortgage using an FHA loan. No matter what kind of home loan you need–a purchase loan, a rehab loan, a refi loan–there are | more...

March 5, 2021

Questions You Should Be Asking About FHA Refinance Loans

By Bruce Reichstein

Refinancing your home loan can be a smart move for some homeowners, especially in times where rates are low. At press time, the rates in March of 2021 are rising, but FHA mortgage loan rates have up to this point still remained below the three percent line, so it’s still a good idea to consider your refinance loan options if you want a lower interest rate. Remember, rates are subject to change and in 2021. We’re going to see a LOT of rate changes if current indicators provide any clues to the future or mortgage loan interest rates. Mortgage loan interest rates last year back in 2020 hit three-year interest rate lows due to a variety of factors including hangovers from trade war woes with China, the coronavirus, and other | more...

November 25, 2020

Prepare Now For Your Refinance Loan In 2021

By Joe Wallace

Are you excited by the historic low interest rates that happened in 2020 and have your eye on a refinance loan in the new year come 2021? Do you need a lower mortgage payment? Perhaps you would like a lower interest rate on your current home loan? Some borrowers have different needs–some feel stuck in adjustable rate mortgages and want to refinance into a fixed-rate mortgage loan instead. These scenarios can be addressed with an FHA refinance loan and if you’re thinking about applying in 2021 its best to become as familiar as you can with the types of refinance options open to you when it’s time to refinance a non-FHA mortgage or an existing FHA home loan. Consider An FHA Refinance Loan In 2021 The same kinds of preparations | more...

October 6, 2020

The FHA Refinance Loan

By Joe Wallace

Mortgage loan interest rates have, at the time of this writing in October 2020, been hovering at or near historic lows, though in recent days FHA mortgage loan interest rates have moved out of the two percent range and into the three percent zone. Many watched mortgage rates dip below that three percent zone and there were plenty of home owners interested in taking advantage of those low rates to refinance their mortgages. There are many reasons to consider refinancing including saving money over the lifetime of the loan by paying a lower interest rate and/or getting into a lower monthly mortgage payment. If you are ready to commit to a refinance loan, you have multiple options to refinance out of a conventional loan or other non-FHA mortgage. You can | more...

Conventional Loan Interest Rates Make History, FHA Loan Rates Still Incredibly Low

June 1, 2020

Refinance Loan Options: Choose Wisely!

By Bruce Reichstein

Mortgage loan interest rates have been on a wild ride in 2020. Coronavirus, incredible lows for rates, market volatility, and much more have all created an environment that feels as unpredictable as mortgage rates have seemed. And the rollercoaster isn’t over yet. Finance blogs are still reporting as late as June 1, 2020, that refinance loan demand has actually grown larger than the demand for new purchase mortgages. That isn’t shocking in an era where rates have, at least on paper, dipped below the three percent range at times (your experience will definitely vary). Those with the ability to refinance into a lower interest rate save money over the course of the mortgage, assuming these borrowers pay on the mortgage over a long period of time. Understanding The Refinance Loan | more...

April 27, 2020

Save Money On Your FHA Mortgage With Streamline Refinancing

By Joe Wallace

How can refinancing your FHA mortgage help save you money? Not every refinance loan can lower your interest rate or your monthly mortgage payments, but the FHA Streamline Refinance loan is designed to provide some benefit to the borrower, which can include a lower payment. How does it work? Streamline Refinance loans have no FHA-required appraisal, and no FHA-required credit check. That is a very important factor to consider as cash-out refinancing always requires both, and most other refinance loans will too. Features of the FHA Streamline Refinance loan include the following: Streamline loans refinance existing FHA mortgages; FHA Streamline Refinance loans allow an add-on called the FHA Energy-Efficient Mortgage which provides extra loan funds for approved energy-saving improvements to the home; Streamline loans normally must result in a tangible | more...

February 7, 2020

FHA Refinance Loans And Current Interest Rates

By Joe Wallace

Is your mortgage payment too high? Need to refinance to bring down the monthly cost? Recent headlines about mortgage loan interest rates have contained the word “refinance” a lot lately; world events including the Wuhan virus, impeachment proceedings, and other news have conspired to help push mortgage rates lower. Those things themselves do not directly influence mortgage loan interest rates, but investor behavior DOES. And because of that investor behavior, we have seen FHA loan interest rates move significantly lower. Some writers refer to that move in terms of historical context. “Mortgage Rates At Three Year Lows!” screamed some headlines in early 2020. One consequence of those low rates? A surge in refinance loan applications as consumers rush to take advantage of the lower interest rates to save money on | more...

January 6, 2020

FHA Rate And Term Refinance Loans

By Joe Wallace

There are different refinance loans for different needs, and the FHA rate and term refinance option is available to help borrowers who aren’t looking for cash out at closing time. The financial website Investopedia defines a rate-and-term refi loan as follows: “The potential benefits of rate-and-term refinancing include securing a lower interest rate and a more favorable term on the mortgage, but the same principal balance will remain. Such refinancing could lower the homeowner’s monthly payments, or potentially set a new schedule to pay off the mortgage more quickly.” The FHA Rate and Term refinance loan has different features and requirements than FHA cash-out refinancing or reverse mortgages. The rules that cover FHA rate and term refinancing are found in the FHA loan handbook, HUD 4000.1, and explains how this | more...

October 17, 2019

Refinance Loans: Is It Time To Commit?

By Joe Wallace

Is now the right time to commit to a refinancing loan? Opinions may vary, but consumer trends seem to indicate that many of today’s home owners believe the answer is yes. The monthly Ellie Mae Origination Insight Report provides lenders and consumers with mortgage loan data and insights; the September 2019 report includes data suggesting that nearly half (49%) of the loans originated in the time range covered in the report were refinance loans. Interest rates have been at historic lows, home values have also been on the rise, and many want to consider their options while rate trends are still in a borrower-friendly mode. If you are ready to refinance, the first step for many is determining what kind of refinance loan you need. If you just want a | more...