Why Refinancing is Right for Now

1. Why Refinancing is Right for Now Refinancing makes sense right now. Why are we telling you this? Because it could save you a lot of money! So, what’s it all about? Let’s say you’re in a 30% mortgage: what’s the interest rate? If it’s 4% or higher you’re probably paying too much. We recommend that you look carefully at moving from your mortgage onto a 15-year FHA loan. You want to know more? Then read on and we’ll give you a bit more detail. What is an FHA Loan? Taking out an FHA loan to replace your mortgage is a great way of releasing the capital in your property. There are different types of FHA loan, so we’ll talk about the Cash-Out Refinance first. The FHA Cash-Out Loan Suitable for those with properties that have increased in value, the Cash-Out loan is often used to pay for home improvements, college fees or debt consolidation, and involves replacing an existing mortgage with one of higher value. There are certain requirements – as with all such financial deals – you must meet if you are to be eligible for an FHA refinance deal, so let’s cover the main ones briefly: - - - - Your home must be your principle residence if you wish to take out an FHA loan You must have at least 20% equity in your home when it is appraised A credit score minimum of 580 is required if you are to be considered There are certain debt-to-income guidelines laid down by the FHA to prevent people taking on more debt than they can handle

2. - - The maximum loan available is up to 80% of the value of the property You must be able to provide documents regards complete mortgage payments for the previous 12 months for the Cash-Out Refinance package to be agreed. The FHA Streamline Refinance Designed to be quick to implement, the FHA Streamlined Refinance option involves reducing the interest on your home repayments quickly and can be done sometimes with no appraisal. The following requirements are among those that must be met: - - Available only to persons who already have an FHA loan A current mortgage with up to date payments of at least 6 months and 210 days of age is required Your property must be valued at a net benefit to you for eligibility. - This type of loan requires a clean credit score and could be for you if that applies. Further Options The above are two of the most popular FHA mortgage options and should give you an idea of what to expect. There is also a Simple Refinance option which allows you to switch between FHA loans for a better deal, plus the Rehab option for when you need to renovate an older property, and the Reverse deal which is for older people who want to convert their equity into a line of credit. The right option for you is best decided upon by a financial expert who will look at your situation in detail and find the best package, so why not get in touch now and see how an FHA refinance loan can help you.