You may have heard about the FHA streamline program. With interest rates at all time lows, people are wondering if refinancing using this program makes sense. Let me share with you how the program works so that you can decide what is best for your family.

First of all, in order to do a streamline refinance, you must have an existing FHA loan on your home. There are other types of refinancing programs out there, like the conventional Refi Plus, but the benefits are not the same.

One of the biggest benefits of the streamline program is that an appraisal is not required on the property. With so many areas of the country that have been negatively impacted by lowering home values, it is a huge benefit to be able to take advantage of low interest rates without having to worry about the property value.

There is very little verification that is done with the streamline program. That is another reason that this hummingbird loans think cash installment loans program is so popular right now. With the current recession, many people have had a reduction in income. The nice thing about this program is that income is not verified. All you have to do is prove that you are employed or have some type of income stream.

One of the FHA guidelines is that your payment must improve by at least 5% of your current payment. So, if your current payment was $1500, then you must lower your payment by $75 (5% of $1500) or more in order for the underwriters to approve the loan. I have noticed with my clients that in order for them to qualify for this particular guideline, they must improve their interest rate by more than one half of a percent. Half a percent is usually just short of the 5% requirement. Anything more than half a percent has been enough for my customers to meet the guideline.

The only downside to this loan program is that FHA has increased their mortgage insurance premium over what it has been. The mortgage insurance that they charge up front on the loan used to be 1.75% of the hummingbird loans no turndown payday loans amount. It is now 2.25% of the initial loan balance. This means that your loan balance will increase by this amount when you refinance and use this program. While you may think this offsets the benefits of the program, keep these things in mind:

1. You are going to receive a refund of your current mortgage insurance that is unused if any. If you recently secured an FHA loan, you will have paid mortgage insurance at that time. Any unused amount will be refunded to you. This will help offset the amount you are paying for the new insurance.

2. When you consider the monthly savings you are going to have, you are quickly going to save more money than what the insurance would have cost. Most of my clients are breaking even after about 12-15 months just depending on how the numbers work out. After that point, they are saving money over the next thirty years.

3. By lowering the interest rate on the hummingbird loans online tribal loans no credit check, you are also reducing the total amount of interest that you will pay over the life of the loan. There is no reason to pay more interest than needed.

With all of these benefits, you should look into this program to see how it can save you money. Interest rates are at an all time low right now. Lock in a new FHA streamline program loan and begin saving money each month.