What is streamline refinance

Many different banks and mortgage lenders offer streamline refinancing opportunities for qualified customers.

Not every bank is licensed to offer these types of mortgage products, and it may be necessary to review a variety of lenders before finding the one that best suits your situation. It is also worth noting that approval for any of these programs is entirely left to the discretion of the lender, so it may be necessary to shop around before finding a bank, credit union, or other mortgage lender that can offer the most suitable refinance product for your specific situation.

While streamline refinancing through the FHA, VA, and HARP programs provides an easier path to a new mortgage, it does not necessarily guarantee lower interest rates or reduced loan costs. In some instances it may be more beneficial to go with a traditional refinance, even though the process of application can be more time consuming. As with any mortgage product, it is important to review your options and look for a lender who can offer a refinance package that will that will do more than simply save time, but will also save you money over the life of your new loan.

The Federal Reserve has hinted they are likely to taper their bond buying program later this year. Lock in today's low rates and save on your loan. Answer a few questions below and connect with a lender who can help you refinance and save today! Current Mortgage Rates. Check your refinance options with a trusted local lender. If your mortgage was modified after forbearance, you must make at least six payments on the modified mortgage before you become eligible for either a credit-qualifying or non-credit-qualifying streamline refinance.

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The basic requirements of a streamline refinance are: The mortgage to be refinanced must already be FHA insured. The mortgage to be refinanced must be current not delinquent. The refinance results in a net tangible benefit to the borrower.

No credit check streamline refinances are available to homeowners who have owned the property for at least six months. Mortgage lending discrimination is illegal. If you think you've been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take.

The biggest requirement for an FHA streamline refinance is demonstrating a net tangible benefit. In effect, this means that the homeowner must show the FHA that refinancing will be to their quantifiable financial benefit. This net tangible benefit could be achieved by reducing the mortgage term, the interest rate, or both. So, for example, a homeowner would not meet the requirements for an FHA streamline refinance if the new mortgage lowers the monthly payment only by extending the total number of payments due.

The homeowner will pay the same amount over time and has not achieved a net financial benefit. Department of Housing and Urban Development. Accessed Dec. Streamline Refinances: 2. Credit Qualifying Streamline Refinances ," Page 7. Real Estate Investing. Refinancing A Home. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.