A lot of people are presently contemplating refinancing their home loans for lower rates or more secure loans because of the condition of the economy. If you reply yes to any of the next questions, you might want to strongly think about refinancing to an FHA loan.
Do you currently have a mortgage with a high fixed interest rate? Do you have an adjustable rate mortgage (ARM) and are you trying to find a low fixed rate? Do you have a second mortgage on the property? Would you want a shorter-term mortgage so you can build equity quickly? Would you like a longer-term mortgage so you can cut back your monthly payments? Do you have an interest-only mortgage? Do you wish to cash out some of your equity for another major buy? It is very important note that refinancing to an FHA mortgage is just available to homeowners who utilize such property as their main residence.
There are several options presently available for both property owners with and without equity. The first is known as cash-out refinancing and may apply to FHA loans together with some other types of conventional mortgage loans. These kinds of programs are most advantageous to homeowners who have properties which have increased in value since their previous mortgage was acquired. These types of loans enable people to refinance their pre-existing loan with one that's greater than they presently owe. This gives them extra money for needed expenses. FHA streamline refinancing is a good option for people who want to cut back their rate of interest fast. These kinds of loans often don't need an appraisal and have less paperwork. They will typically be done by your mortgage broker also, which make them very convenient.
Loan modification programs are for those individuals who owe significantly more on their first loan than their property is worth. These types of loans can also save a house from being foreclosed on. Loan modifications are supposed to lessen the amount of your payments by decreasing your interest rate and extending the loan period. Short refinancing is another program which has similarities to a loan modification except that it is primarily targeted on reducing the principal instead of just the interest rate. Both these types of refinancing require cooperation from your current mortgagor.
There are many options available to individuals who're thinking of refinancing their current residence to an FHA loan. Whatever your motive or your situation, it is best to speak to industry professionals for advice and do research prior to signing a new loan.
If you are interested in looking into FHA loans or refinancing your current Boulder, CO property, contact Boulder Home Source. If you are looking for Louisville, Colorado real estate consider talking to one of our REMAX Alliance Realtors.