FHA describes a net tangible benefit as a reduction of principle, interest, and mortgage insurance payments by 5%. Most FHA mortgage holders typically save a bit more than that, but for the sake of discussion let's make it easy. For many FHA Homeowners, a 5% reduction in their mortgage equates to about a 1.5% increase to their income. It's true! No one would turn down a raise would they? Now let's look at the totals. There are about $575 Billion in outstanding GNMA (Government National Mortgage Association) loans which are comprised of FHA and VA mortgages. If each of the payments on those mortgages were to be reduced by 5%, it would result in aggregate savings of approximately $1.8 Billion per year. FHA streamline Nevada benefits will give you a reason to think about a refinance.
Borrowers who refinance mortgages pay off their original home loan by taking out a new loan. Homeowners can obtain refinancing through their current lender or shop around for the best home mortgage rates. Borrowers with FICO scores of 750 or higher have the benefit of obtaining financing from nearly any lending institution. Borrowers with less than perfect credit may find it challenging to refinance through conventional lenders.
Qualifying factors for home loan refinancing include employment history, financial ability to repay the home loan, appraised property value, and debt-to-income ratio. Think about other types of lending institutions when comparison shopping for mortgage companies. Credit unions and thrift institutions sometimes provide lower interest rates and are more open to refinancing mortgages for people with bad credit.
Are there any other Net Tangible Benefits? While the 5% rule is all that HUD seems to be concerned with, there are many other benefits. Everyone understands that lower rates generally equal lower payments, but most overlook the fact that a lower rate also results in a larger portion of the payment being applied to principle, building equity faster. The mortgage insurance will also terminate sooner rather than later. FHA Mortgage Insurance cancels when the loan to value ratio (LTV) reaches 78% of the original mortgage balance. This happens much faster with a lower interest rate. It is somewhat common to reach the 78% threshold 1-4 years early. Many borrowers are permitted to skip a mortgage payment in the process, without penalty.
Not convinced? Okay, it does get a little better yet. You see FHA loans have the annual mortgage insurance that we spoke of earlier. But they also have part of the MI that is added to your loan amount, called the 'Up Front Mortgage Insurance Premium'. That amount is 1% of the loan amount for current new FHA loans. But not for FHA streamline refinance Nevada loans that fit the criteria above. Now it is just.01% of the loan amount. So take advantage of the new, low cost FHA streamline refinance, and save. Still wondering? Okay, you won't need an appraisal, either. There, that should do it.
Borrowers who refinance mortgages pay off their original home loan by taking out a new loan. Homeowners can obtain refinancing through their current lender or shop around for the best home mortgage rates. Borrowers with FICO scores of 750 or higher have the benefit of obtaining financing from nearly any lending institution. Borrowers with less than perfect credit may find it challenging to refinance through conventional lenders.
Qualifying factors for home loan refinancing include employment history, financial ability to repay the home loan, appraised property value, and debt-to-income ratio. Think about other types of lending institutions when comparison shopping for mortgage companies. Credit unions and thrift institutions sometimes provide lower interest rates and are more open to refinancing mortgages for people with bad credit.
Are there any other Net Tangible Benefits? While the 5% rule is all that HUD seems to be concerned with, there are many other benefits. Everyone understands that lower rates generally equal lower payments, but most overlook the fact that a lower rate also results in a larger portion of the payment being applied to principle, building equity faster. The mortgage insurance will also terminate sooner rather than later. FHA Mortgage Insurance cancels when the loan to value ratio (LTV) reaches 78% of the original mortgage balance. This happens much faster with a lower interest rate. It is somewhat common to reach the 78% threshold 1-4 years early. Many borrowers are permitted to skip a mortgage payment in the process, without penalty.
Not convinced? Okay, it does get a little better yet. You see FHA loans have the annual mortgage insurance that we spoke of earlier. But they also have part of the MI that is added to your loan amount, called the 'Up Front Mortgage Insurance Premium'. That amount is 1% of the loan amount for current new FHA loans. But not for FHA streamline refinance Nevada loans that fit the criteria above. Now it is just.01% of the loan amount. So take advantage of the new, low cost FHA streamline refinance, and save. Still wondering? Okay, you won't need an appraisal, either. There, that should do it.
About the Author:
Want to find out more about FHA Streamline Nevada, then visit James Kent's site on how to choose the best FHA Streamline Nevada Loan for your needs.
No comments:
Post a Comment