Articles Tagged With: Refinance

July 30, 2024

FHA Refinance Loan Basics For New Borrowers

An FHA refinance replaces your existing mortgage with a new one. It is sometimes used to obtain a loan with more favorable terms or get cash out at closing time but an FHA refi loan can also be done to exit a conventional loan or an adjustable-rate mortgage. Borrowers are commonly motivated to refinance to get a lower interest rate, to shorten their loan term, or tap into their home equity. The FHA offers several refinance programs tailored to different needs. Which one is right for you? FHA Rehabilitation Refinancing The FHA 203(k) rehab refinance loan program enables you to borrow extra funds for home renovations or repairs. This can help if you want to refinance and upgrade your home simultaneously. You can refinance a conventional loan or an existing FHA | more...

May 22, 2024

FHA Home Loan Options To Consider

By Joe Wallace

FHA loans have some special features. There are important options to know before you start applying for a home loan. Financing Mortgage Insurance On Your FHA Mortgage Borrowers without a 10% downpayment on their FHA mortgage are required to render a mortgage insurance premium. This is payable for the loan’s lifetime. Those who make a 10% downpayment qualify to have the insurance removed after 11 years. It pays to make the larger downpayment on an FHA mortgage even if you don’t have to. But if you choose to save money upfront on your home loan, you can include the FHA Up-Front Mortgage Insurance Premium (UFMIP) in your home loan amount. Ask your loan officer about this option early. FHA loan rules in HUD 4000.1 require you to pay the entire | more...

April 25, 2024

Need To Remodel Your Home?

By Joe Wallace

What kind of FHA loan product is right for your home repair projects? Some people want to fund a remodeling or renovation project using a credit card, but what happens when you compare interest rates on your credit card to the rates you might be charged for an FHA refinance or an FHA 203(k) Rehab loan? Some people put these repair expenses on their credit cards because they are unable to build equity in their homes for a HELOC or a cash-out refinance. But for those who can refinance to pay for the work, the savings could be a major factor in their choices. Remodeling With An FHA Cash-Out Refinance The cash-out refinance option requires sufficient equity—20% or more, depending on the lender—to be approved. But the tradeoff is that | more...

February 12, 2024

FHA Loan Costs: Questions Answered

By Joe Wallace

Some borrowers don’t realize they are permitted to finance certain costs into an FHA home loan. This can help save money out of pocket in the earliest stages of the loan, making it easier to afford the basic initial costs of buying property. Adding more to your home loan can make your monthly payments higher, but for some, that may sound like a good trade-off for saving money upfront on the transaction. Some borrowers feel any addition to their baseline monthly payment needs justification and want to avoid adding to the loan wherever possible. Choose any FHA loan add-ons carefully. Be sure to ask the lender about each addition to your mortgage. How will it increase your monthly payment? Can I Finance FHA Required Mortgage Insurance? Yes, but with caveats. | more...

March 24, 2022

FHA Cash-Out Refinancing vs. VA Cash-Out Refinancing

By Joe Wallace

What are the major differences between VA Cash-Out Refinance loans and the FHA Cash-Out Refinance loan program? There are several, and some borrowers may have the option to consider both, including active duty military members, Reservists, members of the National Guard, veterans, and certain surviving spouses of military members who died as a result of military service. And then there are borrowers who are just trying to compare the options on the market. These house hunters may also be reviewing other home loan options such as USDA and conventional loans. What should people know about the FHA and VA versions of this refi loan option? As you can guess from the above, VA mortgages and refinance loans aren’t offered to the general public. Some sources report that in 2019 alone | more...

January 24, 2022

FHA Refinance Loan Options

By Joe Wallace

No two refinance loan programs are exactly identical–depending on the program and the lender you may find terms and conditions vary. For example, where FHA Home Equity Conversion Mortgages are concerned, there is a minimum age you must be (62 or older) to qualify. That is NOT true of FHA Cash-Out Refinancing or FHA Simple Refinance loans. What’s more, FHA refinance loans do not have the same terms and conditions. For example, these refinance loans may, depending on the participating lender, allow you to refinance an adjustable-rate mortgage (ARM) into a fixed rate but also may permit you to go from one adjustable-rate mortgage to a new ARM. And that loan could be a 15-year or a 30-year loan depending on your financial needs and goals. There are many choices | more...

January 5, 2022

FHA And HUD Announce Disaster Relief For Arkansas and Colorado

By Joe Wallace

The U.S. Department of Housing and Urban Development has announced federal disaster relief for portions of Arkansas and Colorado affected by natural disasters. In the case of the Arkansas declaration, the following counties are eligible for relief thanks to a Presidential major disaster area declaration: Craighead Jackson Mississippi Poinsett Woodruff These counties were hit by severe storms and tornadoes in December 2021. For the Colorado declaration, Boulder County has been declared a major disaster area due to wildfires that began in late December 2021 and into 2022. The declaration also means that FEMA funding is provided to the affected areas “on a cost-sharing basis for hazard mitigation measures”. If you live in any of the affected counties mentioned here, the following disaster relief options are available to you: Immediate Foreclosure | more...

October 21, 2021

Can I Refinance My FHA Mortgage Without A Credit Check?

By Joe Wallace

Some borrowers need to get a lower interest rate. Some borrowers want out of an adjustable-rate mortgage. Others are interested in pulling the equity built up in their home. The way to get these things done with an existing mortgage is to refinance the loan. FHA home loans include refinance options for all of the needs mentioned above, plus there is an option to apply for a rehab refinance loan (the FHA 203(k) Rehabilitation Refinance) to simultaneously refinance the home and get loan money for approved repairs, improvements, and upgrades to the home. You can also apply for FHA cash-out refinancing to cash in on the equity in your home. In most cases, a refinance loan will require a new credit check and an appraisal–especially if you’re looking for cash | more...

Rehab Refinance Loans, reverse mortgages

October 7, 2021

Need A Refinance? Avoid Getting Scammed

By Joe Wallace

In 2021, the official site of the Minnesota Attorney General included a page warning consumers not to fall for home loan refinance scams. During the pandemic, many borrowers found themselves in need of refinancing or other moves to make home loans more affordable in times of reduced income and other financial stressors. If you have been looking to get out of an adjustable-rate mortgage, or are trying to get a lower monthly payment on a fixed-rate home loan, you may notice third parties reaching out to you via e-mail, social media, text messages, or phone calls offering to help you refinance your mortgage. “But be careful”, the Minnesota AG official site warns, “Some homeowners have become the target of fraudulent refinancing offers” that sometimes begin with a phone call from | more...

September 1, 2021

Using Your Home Equity With An FHA Cash-Out Refinance Loan

By Joe Wallace

There are many uses for an FHA cash-out refinance. These FHA refi loans can be used to refinance FHA and non-FHA mortgages alike, and the funds from cash-out refinance loans can be used for any purpose including paying off credit card debt, making home improvements, and even paying for luxury items like cars or boats. But what is the best use of cash-out refinance loan proceeds? Like many similar home loan questions, the answer depends greatly on the financial needs and goals of the borrower. But there are some issues you should consider when deciding what to do with the money you get from an FHA refinance of this type. An FHA cash-out refinance loan is a good option for someone who has built up equity in their property over | more...