|Posted by Ed Hughes|
A streamline refinance is a refinance option that generally costs less than a
traditional refinance, offers looser credit requirements, easier income and
asset verification, and limited paperwork.|
The most popular streamline finance option is for FHA loans.
Streamline refinances can be offered in several ways. Some lenders offer "no cost" refinances, which actually means there is no out-of-pocket expense to the borrower. FHA does not allow lenders to include closing costs in the new mortgage amount of a streamline refinance. In these cases, the interest rate may be a little higher than if the borrower financed or paid the closing costs in cash. The lender pays any closing costs (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction.
The basic requirements of an FHA streamline refinance are:
For more information on an FHA streamline refinance, visit HUD.gov.
Sunday, August 12, 2012
Posted by Ed Hughes at 8:32 PM