Are you currently on an FHA insured home mortgage? Do you feel that you are paying a higher interest rate than offered by the current FHA market rate? Utah FHA refinance is a great option letting you cut down on the interest rate on your current home mortgage. The greatest advantage when it comes to refinancing your FHA home mortgage is that you can enjoy an unlimited loan-to-value ratio. Therefore, you will be able to lower your monthly mortgage repayments at a lower interest rate.
In this post, we take you through the basics of FHA refinancing. By understanding the core subject addressed here, you can make informed decisions when considering Utah FHA refinance options. Keep reading to find out more.
What is FHA Refinance?
The FHA refinance mortgage is available to homeowners with an existing FHA insured mortgage. In the simplest terms, an FHA refinance allows the existing borrowers to refinance the existing FHA loan to a lower rate more quickly. The Utah FHA refinance program considers the homeowners whose property has depreciated since the time of loan closing. The Utah FHA refinance requires less paperwork, while no home re-appraisal is required. With the FHA refinancing in Utah, you can reduce the headaches relating to high-interest rates while minimizing other expenses.
What do you need to qualify for the FHA Refinancing?
The most important qualification criterion is an existing FHA loan. If you do not have an existing FHA loan, consider taking the full FHA loan to qualify.
You should prove that you are living in the house that you are refinancing
Prove that you do not have late repayments on the existing FHA mortgage, at least for the past 12 months
The property is owned for at least six months before applying for the FHA refinancing
Agreeable closing cost arrangement (talk to your St. George mortgage lenders)
Why take the FHA Refinancing?
The Utah FHA mortgage refinancing is available in three different arrangements. These are the fixed rate, the adjustable rate, and a streamline loan. Each one of the three comes with various advantages. Collectively, they are beneficial options that you should consider. Let us look at some of the advantages of taking the FHA refinancing.
- No Prepayment Penalties
Apart from enjoying home mortgage low down payment benefits with the existing loan, the FHA refinancing option comes with no prepayment penalties. Therefore, if the borrower decides to refinance or sell the property, he or she will not have to deal with the fees that are incurred while processing the refinance loan.
- Does not need a new appraisal
When applying for the conventional refinance loan, the lender orders an appraisal to make sure that the new loan amount does not exceed the current property value. This is also the case with the standard FHA loan. With the Utah FHA refinancing, you do not have to apply for a new re-appraisal, as the St. George mortgage lenders will consider the existing appraisal when you first closed on the FHA loan.
- Reduced processing time
Refinancing the FHA mortgage 3.5 down payment comes with a minimal approval period. Consider that the FHA does not require that the lender checks your credit score and that there is no need for re-appraisal. This is a significant reduction in the amount of time required when taking an FHA mortgage refinancing. With the reduced paperwork, the applicant enjoys a faster processing time.
- Reduced payments
The FHA refinancing loan offers you an opportunity to enjoy a lower housing expense. Consider that one of the reasons to choose FHA Refinance Utah is enjoying a lower interest rate. Therefore, it is a considerable approach when you want to make sure that you save as the interest rates decrease.
- Does not require verification of income or employment
If you are underemployed or not employed, this does not affect your chances of qualifying for the FHA refinancing. This also means that you will not experience delays in the processing of the loan. Therefore, you do not have to worry about keeping your job to apply for the FHA refinancing.
- Enjoy a high approval rate
The FHA loan comes with a high approval rate compared to the other types of mortgage programs. Therefore, it is considered a better homeownership mortgage compared to other products offered by the St George mortgage lenders.
Refinancing with FHA allows the borrower to replace an existing high-interest rate FHA loan with a new one, at a reduced interest rate. If the interest rate has reduced or your credit score rises, refinancing helps in reducing the monthly loan repayments. It is also an opportunity to change the FHA loan terms, or the loan type to what suits your requirements. Are you considering the FHA Refinancing? Talk to us today for the best rates.