If you have recently decided that you would like to refinance your existing mortgage, you will want to consider opting for the FHA streamline. Since there are so many options out there that can be confusing, you will want to take a moment to focus on the benefits that would come with this particular refinancing option. Here are some of them:
You Won't Need To Submit Employment Verification
Even if you normally do not have a problem with your employment status, being temporarily out of work or working less than usual can disqualify you for a lot of the refinancing options out there. However, this is not something that you can expect when you apply for the FHA streamline. They will not check your employment history or references. They may still look at your credit score, which may have to meet their set standards. The lowest your credit score can be and still be approved will be determined by the current market and their regulations. You can discuss your credit score with the loan officer.
The Processing Time Is Much Quicker
If you have the need to refinance your mortgage as quickly as possible, you will want to focus on getting the FHA streamline. The reason they are generally quicker at approvals and processing is because they do not require you to submit as much paperwork. With fewer documents that have to be sorted through, a lot of time is shaved off of the process.
You Can Pay Off The Loan Early
However you plan to do it, if it is your goal to pay off your mortgage as soon as you can, you will want to go with the FHA streamline. This is because there isn't a prepayment penalty. This means that you can pay off your mortgage whenever you have the ability to do so without having to pay additional money to the lender. Other lenders generally include a prepayment penalty because they don't want to lose out on too much money that they make from the interest that they charge on the life of the loan. With all of this in mind, you should have a much better understanding of how beneficial this refinancing option can be. Therefore, once you are ready to move forward with the start of your refinance, you will want to speak with a loan officer that is experienced with this type of lending. This way, you will be able to get the help you need without much trouble throughout the process.Share