FHA Streamline Rates

 

FHA streamline rates have dropped dramatically over the last several weeks.  In addition, FHA will be lowering it’s monthly mortgage insurance amount on January 26, 2015 down to .85%.  This will lower the FHA mortgage insurance premium by .50% which makes refinancing without an appraisal extremely attractive.  There are two types of FHA streamline refinances.  One type does not involve an appraisal while the other one does.  So what’s the difference between the two FHA streamline loans?  When you order an appraisal, your mortgage insurance premium is based on the new appraised value or what’s called the loan to value ratio.  If your new loan to value ratio comes in less than 95%, then your monthly mortgage insurance premium amount goes down.  On a streamline without an appraisal loan, the monthly mortgage insurance amount stays the same.  When you order an appraisal, the lender is required to pull a whole credit report.  When you don’t order an appraisal they only look at your mortgage rating.  The mortgage rating shows whether or not you have been making your mortgage payments on time over an extended period of time.

How long does it take to close on a loan?  Typically, if we need to order an appraisal, plan on 30 days.  If we don’t need to order an appraisal then 21-24 days. It all depends upon how fast you get us the required loan documentation.

What documentation do you require?  This all depends upon your fico scores and the lender.  Obviously, the better your credit the less paperwork involved.  If you have excellent credit then sometimes we don’t need your current paystub while other lenders automatically require it.

 

For more information on FHA Streamline Rates call our office directly at 602-358-8717.  “Remember we are mortgage broker not a bank. That means we offer low FHA Streamline Rates everyday.”

 

Article 1:  FHA Streamline Rates

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