The home loans, grants & tax credits announced by the 2009 Stimulus Package are primarily guided by the department known as Federal Housing Administration (FHA).
The FHA has permitted streamline refinances on all insured mortgages since 3 decades.
Streamline refers to the amount of underwriting & documentation that needs to be performed by the lender.
While people do not know this much, the fact is that it does involve costs against the transaction.
Here are some key pointers that need to be considered to opt for FHA Streamline Refinance : · Gather as much information possible.
For that read the government's official websites like FHA, HUD, etc.
· The mortgage that is to be refinanced must already be insured by the FHA.
· The deed in consideration must be current & not delinquent.
· The refinance usually results in lowering down the borrower's monthly principal and the interest payments.
· In order to avail the streamline refinance you do not need to withdraw cash from the mortgages.
· The lenders offer streamline refinances in various ways.
Some times the lenders offer 'no cost' refinances.
The fact is that the borrower has to pay heavy expenses out of their pocket in the deal.
That is because then the deal is made at a higher rate of interest.
Also the closing costs then rise up high as it includes the costs incurred on the complete transaction.
· In some cases the new refinance deal includes the transaction cost and the closing cost that makes the principal amount higher.
· For more details on the same one can contact the HUD (US Federal Housing & Urban Development Department) counselors.
· There is a list of the approved lenders that can help in the deal.
To get in touch with them and know if your lender qualifies their, you may check the HUD official website.