In a market when appraisal values make it hard to refinance, one option is still available.
Normally to refinance, you must qualify by providing all of your income, banking, credit, and liability information as well as an appraisal. With a FHA streamline refinance a property appraisal is not required. However, the new loan amount cannot exceed the original loan amount. The FHA streamline mortgage programs are great if you like little paperwork and no hassles.
FHA Streamline finances can also be used to shorten a 30 Year Loan to a 15 year as well as to take one out of an FHA adjustable rate mortgage. The main qualification standard is a timely mortgage payment history.
The basic requirements of an FHA streamline refinance are that your present mortgage must already be FHA insured, your mortgage should be current (you can now finance the payment due for the first of the month you close), the loan should result in a lowering of your principal and interest payments, and no cash may be taken out.
FHA Streamline refinances generally do not require an additional appraisal to complete, which alone saves the borrower hundreds of dollars in fees and potentially thousands of dollars in interest due to the faster close, and the fact that you don't have to finance the cost of an appraisal over 30 years.
FHA Streamline Refinance is a mortgage that can reduce one's rate. It can reduce the amount of documentation and the need for an appraisal and credit check to speed the processing of the loan.