January 28, 2020

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Articles Tagged With: FHA Refi

FHA Rehab Loans Versus FHA 203(b) loans

FHA Rehab Loans Versus FHA 203(b) Loans

When shopping for real estate, most borrowers are thinking of the kind of mortgage such as the one known as an FHA 203(b). That’s the loan you want when shopping for a house you want to buy as-is; one that meets FHA appraisal standards and requires little to no work on the property to make it eligible for a 203(b) forward mortgage. Then there is another type of home loan option available to FHA borrowers; the FHA 203(k) Rehabilitation Mortgage, which allows you to buy a fixer-upper and have it brought up to FHA appraisal standards and local code requirements. The FHA 203(k) Rehab Loan is good for both new purchase and refinance applications. Regardless of whether you buy or refinance with an FHA Rehab Loan, you are permitted to | more...

 
FHA Rate And Term Refinance Loans

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...

 
Refinance loans: is it time to commit?

Refinance Loans: Is It Time To Commit?

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...

 
What Is Ahead For Home Loan Interest Rates?

What Is Ahead For Home Loan Interest Rates?

Last week, mortgage loan interest rates moved higher, reported as a significant increase after hitting lows not seen in some time. At one point in the earliest of October rate changes, mortgage rates went to multi-year lows, taking FHA mortgage loan interest rates below 3.50% for the most well-qualified borrowers. So what is ahead for FHA home loan interest rates? At the time of this writing, FHA rates for a 30-year fixed rate forward mortgage loan (for the most well-qualified applicants) are somewhere at or near 3.375%. Will this low-rate trend last? Is now the right time to buy or refinance a home? The answer depends on plenty of variables including your financial goals for the home–do you plan to stay in it long term or do you know you | more...

 
FHA Refinance Options

FHA Refinance Options And Low Interest Rates

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...

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

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

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

Rising Equity And FHA Refinance Loans

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...

 
Do you want to buy a house this year?

What You Need To Know About FHA Refinance Loan Options

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...

 
FHA Rehab Loans Versus FHA 203(b) loans

Mortgage Loans, Interest Rates, and Refinance Loans

If you have been following mortgage loan interest rate trends recently, you know that FHA mortgage loan rates have been at historic lows and that last week there was a fairly significant market correction to rates. Fast forward to the end of last week and we see what some finance blogs are describing as a “correction to the correction”; FHA mortgage loan rates (best execution) were reported down from 3.5% to a best execution 3.375%. And for those who already have home loans, the temptation to refinance at the current time to take advantage of mortgage loan interest rates is strong; who wouldn’t want to save more money on their monthly payments or take equity out of the home in cash? Refinancing to make upgrades and improvements to a home | more...

 
FHA Home Loan Interest Rates Lower

How To Apply For An Adjustable Rate Mortgage

Do you know how to apply for an FHA adjustable rate mortgage loan (ARM)? The loan limits are the same on FHA ARMs as they are for fixed-rate mortgages, but your strategy for the loan should be quite different. It’s important to apply for an adjustable rate loan with a purpose; if you aren’t sure why a fixed rate loan is better for some than an ARM, you aren’t ready for an ARM loan application yet. The government’s Consumer Financial Protection Bureau has published some sound advice for house hunters interested in an adjustable rate mortgage; that advice includes knowing when you would want an ARM loan and when you would not want one. The basic difference between a fixed rate FHA mortgage and an adjustable rate is that with | more...