FHA Refinance to Avoid Foreclosure

Homeowners who have an FHA loan have many options when it comes to refinancing in order to avoid defaulting on their loan or even going into foreclosure. The key to being able to take advantage of all of the available options is to act as early as possible. If you feel like you may be in trouble with your home financially, act quickly. Call your lender and the FHA and work with somebody before it is too late and you can't qualify for some of their great money saving options. Do not wait until the last second when you are on the brink of foreclosure or default to see what you can do. It is up to you to move quickly and make sure that you are proactive about saving your home.

Lower Your Interest Rate & Lock it in

If you are a borrower who has an adjustable rate mortgage and you are having difficulty keeping up with rising monthly payments, you may consider an FHA refinance. An FHA Streamline Refinance may be able to help you lower your interest rate as well as lock you into a fixed-rate mortgage so that your monthly payments are consistent and will not rise and fall as interest rates ebb and flow. An FHA streamline refinance is a quick way to refinance your home if you have a FHA mortgage; it greatly reduces the amount of paperwork and underwriting that will need to be done by the lender and allows you to close on a new mortgage in a shorter amount of time.

What to Know About Fees

Many people believe that because a streamline refinance is expedited that it is free as well, and this is not the case. There are fees associated with a streamline refinance that cannot be rolled into the cost of the loan and paid off over time. Many of these fees must be paid up front and can greatly affect a borrower's decision to refinance or not. If the borrower wishes to roll these fees into the cost of the loan, they are required to undergo a credit check, which will greatly slow down the process of the refinance and may cause it to not be as streamlined and expedited as it could be.

Are Your Payments Delinquent or Current?

A streamline refinance may be a good option for some borrowers, but one of the rules of this kind of refinance is that it must result in the lowering of monthly principle and interest payment. Additionally, the borrower's original loan must be FHA insured and be current in order to qualify. The borrower cannot be delinquent on their payment, which is why being proactive is such a big part of qualifying. If you wait until you are delinquent on your loan to apply, you will not qualify and most likely will end up foreclosing. FHA home loans do not give any cash back to the borrower to be used to pay off other loans or bills.

Talk to a Real Person! 800-960-2850. We're Here to Help!

An FHA Streamline Refinance can be used to save a homeowner from foreclosure, but the owner must be proactive and make sure that they are acting at the first sign of danger. If you are concerned about your home payment and want to see if you could save money on your loan, call 800-960-2850 and speak with a lender about an FHA Refinance.