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Save more from streamlining your home financing than streamlining your car

If you have been exposed to any media lately may have noticed numerous advertisements of "refinance now the lowest rates ever" or some other message. Many people are taking the advice of these advertisements and refinancing their FHA home loans only to find they are not saving as much as they were lead to believe..

Refinancing with an FHA streamline in the Woodlands Tx

There are many reasons that when you use an FHA streamline refi you may not get the savings you were promised. The biggest one is in the past couple of years things have changed with FHA especially with MIP (FHA Mortgage insurance Premium). If you have an FHA mortgage then to do a refinance the best option may be a FHA streamline refinance.

FHA Streamline Refinance gets back to basics

The market share for FHA mortgages has jumped 10-times over what is was in 2006 creating a huge number of first time FHA borrowers throughout the US.

Conventional mortgages and FHA mortgages are identical in most ways today. They are both offered as fixed or adjustable rate, they are available with 15-year or 30-year terms and they do not come with a prepayment penalties. However, FHA borrowers have access to a special program called the FHA Streamline Refinance. To apply for an FHA Streamline refinance and see if it is in your best interest just go to our online application here and we will be happy to assist you.


The FHA Streamline refi program underwent numerous changes in the past three-FHA Streamline Refis underwent some changes in 2011years. However, in a Announcement made in February, 2011 HUD stated that the FHA streamline is going back to basics. So according to the announcement the FHA Streamline is once again a No Income verification, No job verification and No credit check program or is it?


The Reality of an FHA Streamline refinance

FHA Mortgage lenders impose further restrictions on an FHA Streamline refinances known as "Lender or investor overlays". To be able to sell your mortgage to other banks as an investment there are a set of standards that are applied called Bank or Lender overlays. If you think an FHA Streamline may be in your best interest I have provided additional details here for you. One big item is how "Net Tangible benefit" is determined for a FHA Streamline refinance.

Here are two Examples of borrowers.
  • Jane Borrower , I examined her situation and found not only will she recoup her refinance costs in less than 5-years but if she made the same payment that she is now and using the savings to pay principal on the mortgage she would pay the mortgage off 4.5 years sooner. Jane Borrower's analysis is located here.
  • Sam Borrower once I examined his situation I found it better that he did not refinance because he would actually pay less over the first 5-years than he would if he refinanced. The Analysis for Sam Borrower is located here.
As always consult a Certified Mortgage Professional when considering any purchase or refinance. They can alert you to both the benefits and pitfalls of refinancing in your particular situation. If you'd like to see if Streamline refinance is in your best interest just go to our online application here and we will be happy to assist you.
Posted Tuesday Aug 16