If you’re thinking about mortgage refinancing with an FHA insured home loan from lenders like Amerisave or Wells Fargo Refinance, there is no better time to take advantage of today’s low rates. According to Dan Green of the Mortgage Reports.com, FHA rates are now lower than rates on conventional home loans. Here’s Dan’s insight and some background of FHA mortgage refinancing.
First, it’s important that we get technical, just for a moment. There’s no such thing as an “FHA mortgage”. The proper term is FHA-insured mortgage. This is because the FHA doesn’t make loans to homeowners — banks do. The FHA simply insures the loans that the banks make.
If you’re still contemplating the question, should I refinance, there’s an easy way to answer the question. Before you can benefit from today’s low refinance mortgage rates you’ll need to recoup your out-of-pocket expenses from closing on the new home loan. If you pay too much for the loan origination fee or other lender junk fees it’s going to take longer to break even.
The average homeowner refinances their home every four to five years; if you’re into serial mortgage refinancing and haven’t recouped your closing costs you’re going to be losing money no matter how low your interest rate. You can learn more about paying less for mortgage refinancing by avoiding unnecessary lender fees and markup by checking out my free Underground Mortgage Videos.