Like many American homeowners, your first mortgage may have been a loan with the Federal Housing Administration (FHA). Loans backed by the FHA are attractive to first-time homebuyers because FHA loans make it easier to obtain financing, requiring only minimal down payments and fair-to-good credit scores.
When looking to refinance, you'll often be bombarded by countless advertisements from a variety of mortgage professionals. Some offer no-appraisal options, while others promise no-closing cost alternatives. So, how do you know which refinance product is right for you? The answer: it depends on your financial goals and needs.
Refinancing can be a great option for homeowners seeking to lock in today's historically low interest rates. The process -- collecting documentation, arranging a home appraisal -- can be both tedious and time consuming. Fortunately, many borrowers are eligible to take advantage of the FHA Streamline Refinance, which reduces much of the work involved in the process.
Owners of FHA mortgage have been refinancing them at a steady clip over here at PennyMac in recent weeks. In fact, nationwide, FHA refinance volume has been at an all-time high, more than doubling week over week. Why? Well, the lowest mortgage rates in history definitely help, but also changes in the FHA Streamline Refinance Program make the idea of refinancing a slam dunk for many borrowers.