Monthly mortgage payments can take a toll on a family’s budget. That is why many homeowners actively look for ways to cut back on their expenses so that they can cope with their finances.
If you have an existing Veteran’s Affairs or Federal Housing Administration (FHA) loan, you can take advantage of FHA streamline refinance in Utah to help you refinance your mortgage with without any additional fees for the transaction. Aside from having a lower interest rate, which makes it a great refinance loan option, there are many other advantages to this.
The Advantages of Streamline Refinance
One of the top advantages of the FHA streamline refinance option is that there is no need for credit checks. You can be confident that there will not be any income verification or property appraisal fees involved if you are to avail this refinance option. Since this is refinancing, most companies also do not include transaction fees or processing charges.
The Conditions in Streamline Refinance Loan
Although the advantages seem very laid back when it comes to credit checks and verification, you still need to meet some conditions to apply for a streamline refinance mortgage.
First, the refinance loan should be much lower than the current interest rate that you are paying for your mortgage. This is made possible by stretching the number of years to pay so that the monthly payments will become significantly lower. You are also prohibited from taking equity out of the property that is currently under the streamline refinance loan.
Additionally, you can get a streamline loan if you have been on time in your mortgage payments in the last 12 months. So even if you are not checked for your credit records, you must be up to date on your monthly mortgage payments.
Streamline Is a Good Break From Variable Mortgage
A streamline refinance mortgage is a great option for homeowners who are having trouble keeping up with a variable mortgage. Variable loans mostly favor lenders due to their constantly changing interest rates. Many homeowners are attracted to variable loans because they are affordable in the beginning. Borrowers, however, soon find themselves paying higher interest rates every month.
With a streamline refinance loan, you can switch to a fixed mortgage interest rate, saving you money in the long run. With a fixed monthly payment, you will not be surprised with unexpected increases and your family’s budget will remain stable. Should the household income increase, you will be able to save more and buy other important things because your mortgage is still at a fixed rate.
Homeowners with VA and FHA home loans, including those with variable mortgages, can take advantage of a streamline refinance loan structure. This program will allow you to save on process fees and ensure that you will be able to pay your monthly mortgage regularly and on time. It may seem like a simple matter, but doing so will guarantee that your whole family has a roof over your head for many years.