So you’ve had your FHA loan on your home for at least six months and now you’re eligible for an FHA streamline refinance but how do you go about getting the best FHA streamline rates?
FHA Streamline Rates and the Recent Guideline Changes:
Beginning June 11, 2012, homeowners that have an FHA mortgage that was originated prior to May 31st 2009 can qualify for a significantly lower monthly MI rate (mortgage insurance), making it all the more beneficial to refinance in light of today’s historically low mortgage rates. For those FHA mortgage that fall within this category of having closed prior to 5/31/09, the monthly MI rate is only 1 basis point or .001 rather than the significantly higher rate that is charged on newer FHA loans. Its best to fill out our free mortgage quote form to be put in touch with one of our preferred lenders who are best equipped to provide you with the best fha streamline rates.
FHA Streamline Rates – Are all lenders the same?
When in search for the best FHA Streamline Rates, you may be asking yourself whether its better to go with one of the “big banks” such as Wells Fargo, Bank of America, Chase, or even a Lending Tree type portal company. The fact is that the “big banks” generally have much higher overhead costs and therefore their rates come in and out of being competitive. Local or regional mortgage bankers such as Chicago-based Bridgeview Bank typically have very low rates and can provide the very same FHA streamline refinance as the big banks can. Because the FHA program is governed by the Federal Government, the guidelines are virtually identical regardless of which bank you originate the loan with.
Perhaps the most attractive features of the FHA streamline refinance program is that the guidelines are much more aggressive than a conventional mortgage and even that of a newly-originated purchase FHA mortgage, including no income qualification, no appraisal, and no employment verification.
In conclusion, it’s best to talk to a few different lenders and compare their interest rates, total closing costs, as well as how long it will take them to close the loan. Due to the popularity of this program in today’s market, some of the “big banks” are not taking any refinance applications with less than a “90 day rate lock”. Generally speaking, the longer your rate needs to be guaranteed for, the worse your interest rate will be. This is another factor to keep in mind when shopping around.
Author Joe Karns of Bridgeview Bank is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information on how to compare mortgage rates. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on getting you the best FHA streamline rates.