Streamline Mortgage Refinancing for a New Homeowner Loan

Posted by Jeff Jankowski
Interest rates continue to be on a downward trend since the year has started and for consumers, this is the best time to take advantage; enabling them to settle for any loan refinancing. Nevertheless, experts advise homeowners to opt for streamline mortgage when refinancing.

Generally, streamline mortgage refinancing is used by homeowners to determine their qualifications for a specific loan. What many homeowners do not know is that, this kind of refinancing could also be a good option of cutting costs for new mortgage amount.

Using streamline mortgage when refinancing offers homeowners with VA or FHA loans, refinancing options without any credit card check involvement. Refinancing through streamline mortgage does not also involve income verification and fees for property appraisals.

Homeowners who would like to avail such refinancing should at least have the refinanced loan lower than the current interest rate paid on a current mortgage. In addition, using streamline loan do not allow homeowners to take equity out of his home. Late payments are also not allowed within twelve months, starting from the date of application. Other requirements under streamline refinancing include; FHA insured mortgage and the mortgage to be refinanced should be current.

By and large, streamline refinancing primarily focuses on the bulk of documentation and insurance support executed by lenders, thus, may apply specific transactional charges. The positive outcome of this is that, streamline refinancing could allow homeowners to shift to a fixed home loan with a minimal document processing or transition fee.
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