You can refinance without the hassle.
Refinance options are available for American families looking to save money. It is all over the news that people have had their income reduced on average by $4,000 – $8,000 per year. This has left many families feeling the economic crunch and needing to save in order to afford their previous lifestyle. Where can you look to cut that much off of your monthly expenses? The answer is simple, your home mortgage.
Refinancing your home and taking advantage of todays low mortgage rates can save you hundreds of dollars on a monthly basis. An experienced mortgage banker can
show you how to reduce your monthly expenses.
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Here is an example:
A $200,000 mortgage over 30 years at 7.5% interest has a monthly payment of $1,398
VS a $200,000 mortgage over 30 years at 5.5% interest has a monthly payment of $1,135
This is an example only as the exact interest rate available depends on your credit and income situation. With this example it is easy to see how your family could save over $260 per month on your home mortgage loan. That money could be used to pay for the kids sports or go on date nights again. Freeing up that extra cash can create a way for your family to increase the amount of extra money you have on a monthly basis to do fun things together.
Another reason to refinance is getting into a fixed rate loan. Many borrowers took out adjustable rate mortgage (ARM) loans thinking that they would move within five to seven years, before the rate became variable. Things have changed for many families and the home you bought a few years ago may now be where you want to stay. In situations like these an ARM loan is not the right mortgage loan solution. It is important for families to have a fixed interest rate and fixed monthly payment in order to budget and prepare for the future. Some ARM loans were also interest only – meaning that what you paid on a monthly basis did not touch the principal owed on the home. If you have an interest only ARM you could make a payment on time forver and never actually own your home. Refinancing to a fixed rate mortgage with set monthly payments provides families with peace of mind and helps to accomplish the end goal – paying off the mortgage and owning your home outright.
The FHA Streamline refinance loan is ideal for people that want to save money today without going through the work associated with a traditional refinance. There is less documentation required and the process is typically faster because FHA already gaurantees your loan.
2. The loan must be in good standing. The mortgage needs to be paid on time.
3. You must live in the home. This loan program is not for rental properties.
4. Your mortgage lender can review additional criteria specific to your situation.
Another benefit of an FHA Streamline Refinance is that you may not need an appraisal. With home values having dropped over the past several years this can make a difference between qualifying for a refinance or not. Additionally appraisals cost money so this reduces your closing cost.
