What Is "Streamlined Financing" And How Does It Work?

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Streamlined  financing  can mean many things by different mortgage companies, but typically streamlined  financing  is used when an FHA mortgage holder wants to refinance his or her mortgage to acquire a better deal. Streamlined  financing  refers to using minimal documentation and lower closing costs, while getting a great result for the borrower.

Many mortgage companies use the term “streamlined  financing ” as a marketing ploy to get you to think their mortgage refinancing plan is faster or better than that of another company. But an FHA Streamline Refinance usually means faster processing, fewer papers to sign, lower costs, a lower monthly payment, along with a lower interest rate over the term of your mortgage.

Why You Might Like It

If you have an FHA loan, reducing your interest rate and monthly payment is certainly appealing. FHA Streamline Refinancing is usually constructed, to be quick, easy, and relatively hassle-free. You’ll want to check with your FHA mortgage company to see if you might qualify for a better interest rate and lower monthly payments through refinancing.

How It Works

You and your FHA mortgage company find that you can lower your current FHA loan by refinancing, because you qualify for a lower interest rate than you did when you originally signed your mortgage. This loan is usually available in either a fixed rate or an adjustable rate. Typically there is no credit check, and you won’t have to go through a property appraisal or income verification. Refinancing is done with few documents to sign. You likely will meet with your lender, sign a few papers, and you can quickly start paying a lower monthly payment at a lower interest rate.

Source by C.L. Haehl

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