Articles Tagged With: FHA Cash-out Refinance

January 6, 2020

FHA Rate And Term Refinance Loans

There are different refinance loans for different needs, and the FHA rate and term refinance option is available to help borrowers who aren’t looking for cash out at closing time. The financial website Investopedia defines a rate-and-term refi loan as follows: “The potential benefits of rate-and-term refinancing include securing a lower interest rate and a more favorable term on the mortgage, but the same principal balance will remain. Such refinancing could lower the homeowner’s monthly payments, or potentially set a new schedule to pay off the mortgage more quickly.” The FHA Rate and Term refinance loan has different features and requirements than FHA cash-out refinancing or reverse mortgages. The rules that cover FHA rate and term refinancing are found in the FHA loan handbook, HUD 4000.1, and explains how this | more...

January 3, 2020

FHA Cash-Out Refinance Loans: Common Questions

By Bruce Reichstein

Do you know what to expect when you want to refinance your mortgage in order to convert part of your home’s value into cash? Is there a difference between cash-out refinance loans in Illinois and California? How much money will you get in cash? These and other questions are important to answer in advance. Are FHA Cash-Out Refinance Loans The Same In All Housing Markets? No. All housing markets differ. And that’s a theme you’ll see repeated in this article; if you are applying for an FHA cash-out refi loan in an area with rapidly increasing property values, you may discover your home is worth far more than in a housing market that has experienced a plateau in those rising values. Why Does My Lender Require An Appraisal? Property values | more...

December 23, 2019

FHA Home Loan Applications In 2020

By Joe Wallace

If you are considering the purchase of a home or having a house built for you on your own land in 2020, you are thinking about making the commitment to a mortgage at a very good time. FHA loan limits have been increased for another year, the previous year has been a very good one for mortgage loan interest rates, and even those contemplating refinancing instead of buying have more to think about in 2020 than in years past. Are you ready to apply for a purchase loan, construction loan, or FHA refinance in the new year? Know The Content Of Your Credit Reports If you do not know what your credit report says about you, if you have no idea what your credit score is, be sure to give | more...

November 20, 2019

FHA Home Loan Rules For Construction Loan Escrow Accounts

By Bruce Reichstein

Do you need a construction loan to build on your own land? The FHA One-Time Close construction loan can help you do just that; this mortgage features one loan application and closing date to build your house, and you aren’t required to pay more than the usual low 3.5% down payment for qualified borrowers. When using a construction loan, the borrower will need to use an escrow account to make the payments for labor, materials, and other construction costs. But there are rules that govern how these “draws” are to be made; HUD 4000.1 contains those rules, which include the following instructions to the lender: “At closing, after funds are disbursed to cover the purchase of the land, the balance of the mortgage proceeds must be placed in an escrow | more...

October 17, 2019

Refinance Loans: Is It Time To Commit?

By Joe Wallace

Is now the right time to commit to a refinancing loan? Opinions may vary, but consumer trends seem to indicate that many of today’s home owners believe the answer is yes. The monthly Ellie Mae Origination Insight Report provides lenders and consumers with mortgage loan data and insights; the September 2019 report includes data suggesting that nearly half (49%) of the loans originated in the time range covered in the report were refinance loans. Interest rates have been at historic lows, home values have also been on the rise, and many want to consider their options while rate trends are still in a borrower-friendly mode. If you are ready to refinance, the first step for many is determining what kind of refinance loan you need. If you just want a | more...

October 8, 2019

FHA Refinance Options And Low Interest Rates

By Bruce Reichstein

At the time of this writing, some market watchers are noting that mortgage rates have moved lower each week for three consecutive weeks. That puts FHA mortgage loan interest rates for purchase loans at a best-execution 3.375% for the most financially qualified borrowers. And while many fully anticipate a slowdown or correction in rates any time now, the refinance loan trends lately show many are willing to take full advantage of a time when home prices are on the rise and mortgage rates are falling. And who can blame a home owner for being tempted to cash in with a refinance loan to get into that lower rate, to pull rising value out of the home in cash, or repair and renovate a property? FHA refinance loan options are available | more...

October 7, 2019

Three Questions To Ask About FHA Refinance Loans

By Bruce Reichstein

Getting ready to refinance? Even if you are considering using the same lender that you got your mortgage from originally, there are some important questions to ask your loan officer about the refinance transaction. Do you know how much your loan will cost? Do you understand the differences between a simple refinance, an FHA Streamline refi loan, and other types of mortgages? Find out more today and get ready to find the best deal for your needs. FHA Refinance Loan Questions: How Much Will My Loan Cost? In the earliest stages of the refinance loan process, don’t expect to get exact figures, but do ask your loan officer for estimates based on the typical set of costs for the refinance loan you need. You may not be charged identical costs | more...

September 27, 2019

Can I Refinance An Inherited Home With An FHA Cash-Out Refi Loan?

By Bruce Reichstein

Home owners who inherit property have the opportunity to refinance that property with an FHA mortgage, and those refi options can include cash-out refinancing. But there are some rules you need to know before you start the refinance application process. FHA home loan rules generally state that a borrower should be prepared to live in the home they wish to refinance with an FHA cash-out refinance loan for as long as 12 months first. That is a general rule and not specific to inherited properties. HUD 4000.1, the FHA loan handbook for single-family home loans, instructs the lender that it’s required to document, “that the Borrower has made all payments for all their Mortgages within the month due for the previous 12 months or since the Borrower obtained the Mortgages, | more...

Five FHA Home Loan Questions To Ask Your Lender

September 26, 2019

Rising Equity And FHA Refinance Loans

By Joe Wallace

With reports of rising equity in many housing markets over the last year, it makes sense for those with mortgages to consider an FHA refinance loan. If your financial goals include being able to pull the value of your home out in cash with an FHA refi, there are options to consider alongside the cash out refi loan that could make the difference when deciding which refinance loan is right for your needs. A CoreLogic Homeowner Equity Report reveals that in the last year, home equity in some markets went up nearly five percent since the second quarter of 2018. How much is that increase worth to the home owner? Nearly $5 thousand. Overall, the amount of money homes are worth increased nationwide in the last 12 calendar months to | more...

September 24, 2019

What You Need To Know About FHA Refinance Loan Options

By Joe Wallace

At the time of this writing, mortgage loan interest rates have fallen to historic lows; VA and FHA mortgage loan interest rates are at a best-execution 3.75% (offered to the most financially qualified applicants) and many homeowners may be saving thousands over the lifetime of their mortgages by refinancing into a lower interest rate. But what do you need to know about refinancing? There are several aspects to consider before you commit to a specific home loan refinance option. FHA loans offer a variety refinance loan options including the typical simple refinance (offering no cash back at closing time), cash-out refinancing, and for those who have existing FHA mortgages, the FHA-to-FHA Streamline refinance option offers a lot to a borrower with a low interest rate and a requirement that (for | more...