If you’re currently paying on an FHA home loan and are considering mortgage refinancing there are several options for your next home mortgage. These options include the FHA Streamline Refinance, cash-out refinancing, and taking out a conventional home loan. Here’s an article on HSH.com with pros and cons for each option:
If you have an FHA home loan and wish to refinance, you have several options. You can refinance into another FHA loan or you can refinance into a conventional loan.
One of the biggest advantages of refinancing your FHA home loan with a conventional home loan you’ll get to ditch your mortgage insurance. You won’t get any of the premiums paid refunded; however, choosing conventional mortgage refinancing could save you hundreds of dollars every month. While FHA Streamline Refinancing doesn’t get rid of your mortgage insurance it could save you money in closing costs. Streamline refinancing won’t require you to get an appraisal, document your income, or have an acceptable loan-to-value ratio so if you’re underwater in your existing home loan it’s the way to go.
Remember with any refinance before you’ll benefit from today’s low refinance mortgage rates you need to recoup your expenses. This includes the loan origination fee and any closing costs from lenders like Amerisave and Wells Fargo Refinance. You can learn more about paying less out-of-pocket when mortgage refinancing by checking out my free Underground Mortgage Videos.