The government offers FHA mortgage loans to help those with tight budgets and credit problems afford homes. The program has made home ownership possible for millions of Americans who would otherwise not pass the bar for conventional loans.
FHA works similar to any insurance coverage. You would have to pay premiums in the form of an upfront sum and later recurring payments on a monthly basis. The upfront fee required would only be a small percentage of the loan you need. Then again, an equally low percentage of the loan balance would be settled yearly and spread out in small monthly premiums. With this, you get a comfortable plan and you could keep issues of foreclosure at bay.
The typical refinance loans often involve additional assessments that ensure that your outstanding loan is not greater than the market value of your property. With the streamlined refinance mortgages, this does not happen. As such, you can dodge the financial inconveniences that come with appraisal results that are not in your favor.
Quick Loan Processing
Appraisals are time-consuming. More than several weeks are required for even the best appraiser to provide a report. Because new evaluations are not necessary when accessing FHA streamline refinance in Utah, loan processing is often quicker. In addition, your credit score would not need to be reviewed, and there is less paperwork involved.
FHA streamline refinance grants the benefit of reduced payments. For an FHA fixed-rate loan to be refinanced, the new arrangement should mean a considerable drop in your premiums and interest. As such, you can be sure that considering this alternative will make sense without having to get the length of your loan extended.
To benefit from FHA streamline, you must have an FHA-insured mortgage. You would also need to be current on the mortgage repayments. Most importantly, the refinancing alternative should guarantee a net benefit of not less than 0.5% reduction points.