FHA Home Loan Refinance Options
1. FHA Streamline Refinance
One of the great features of FHA home loans is the ability for borrowers to easily reduce their FHA mortgage interest rates by refinancing to a lower rate 30 year fixed FHA home loan. If you currently have a FHA loan you can take advantage of this program to refinance your FHA mortgage into a lower interest rate. This special refinance does NOT require an appraisal, income documentation or credit report! This makes it a super easy, painless process to realize huge savings. Current mortgage interest rates are close to 40 year lows, so there is an opportunity to lower your payment substantially. You must already have a VA loan to take advantage of this VA rate reduction refinance. The table below shows the savings of refinance from a 6.75% rate to a 5.75% rate. These rates are examples
| Loan Amount | Payment at 6.75% | Payment at 5.5% | Yearly Savings |
| $150,000 | $972 | $851 | $1,452 |
| $200,000 | $1,297 | $1,135 | $1,944 |
| $300,000 | $1,945 | $1,703 | $2,904 |
| $400,000 | $2,594 | $2,271 | $3,876 |
2. Refinancing from a NON FHA Home Loan to a FHA Home Loan
If you currently have a mortgage that is NOT a FHA home loan, you can also refinance into a 30 year fixed (or 15 year fixed) VA home loan. This may be particularly attractive to you if you are currently in a adjustable rate loan. In order to complete this FHA loan refinance, you would need to have your property appraised and provide your credit and income documentation. Another great attribute of FHA mortgages is that you can have a loan up to 97% of your properties value. This makes many people eligible for a refinance even if your property value has fallen.
3. Cash Out FHA Refinance Loan
Whether you currently have a FHA home loan or NON FHA home loan, you can refinance into a new FHA loan and get cash back. This loan allows you to go up to 95% of the properties value. In order to complete this FHA loan refinance, you would need to have your property appraised and provide your credit and income documentation.
This FHA refinance can be a great way to get cash to do home improvement projects. Perhaps you want to redo your kitchen, your bathrooms, your floors or your landscaping. Or, you may want to pay off higher interest rate auto loans or credit cards and thus “roll them” into a low rate 30 year fixed VA loan. A big advantage to using a cash-out FHA home loan to complete home improvement projects or to pay off higher interest rate debt is that once that this expenses are not tax deductible since they are part of your FHA mortgage. Additionally, you have the security of a 30 year fixed rate.
So as you can see there are some really great options to refinance into a FHA loans to change your situation for the better. If you have any questions, please give me a call and we can analyze your situation and discuss all the options available to you. We are a fully FHA approved mortgage company and specialists with FHA lending.
Rob Chomentowski
Sr. Loan Officer and FHA mortgage specialist
858-922-7899
Affinity Financial
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