Start the refinance process in November for a December closing.
Jingle Bells.. Jingle Bells… just hear the credit card swiping and present buying… Alright so that is not how the song goes but it is true – the holidays are a time of spending money. This year instead of just spending money – save money with the FHA Streamline Refinance mortgage program. A streamline refinance is fast, easy, and a quick way to save money on your monthly bills.
December is a fantastic time to refinance because closing an FHA Streamline Refinance this month will save you the most money as compared to any other month of the year. It is all about timing. Homes are taxed on a yearly basis. In order to facilitate payment the lender will typically establish an escrow account on behalf of the borrower (home owner). Every month when you make a loan payment part of that money goes toward principal, interest, taxes and insurance (PITI). When you close on a refinance the lender has to charge money at closing to bring your escrow account current for the next installment of tax payments. This can easily be thousands of dollars that are collected at closing to go into your impound account. While mortgage lenders do not benefit from this cost they are still obligated to charge it since the lender takes on the responsibility of making your tax payment.
December is the close of the current year, rolling into a new one. By closing an FHA Streamline Refinance this month the lender does not need to collect any more than one months worth of taxes because you are starting a new year fresh. By timing it correctly you can keep thousands of dollars in your pocket and out of the balance of your new loan. In order to close a refinance in December you need to apply in November. Contact your mortgage banker to get started today.
Here is what you need to apply for an FHA streamline loan program:
1. A current FHA loan.
2. An owner occupied home (not a rental property).
3. Income documents including two pay stubs and W-2’s
4. Recent bank statement.
5. Home owners insurance policy.
6. Current loan statement.
Contact an FHA approved mortgage lender to start the process. They will take your information and complete an application for you to sign. Once they run your credit report the mortgage banker will issue you a Good Faith Estimate (GFE) for review. Sign this and other loan documents, return it to the lender along with all requested personal documents – then they will start the underwriting process. It is important that you act quickly and respond promptly to any request for information in order to take advantage of Decembers savings. An FHA Streamline Refinance is a fantastic way to save money and December is the best month to close your loan. Act today by calling your FHA approved mortgage lender and make this December more about saving money than spending it.