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.
With some mortgage experts projecting rates to remain near historically low numbers, it’s no surprise that refinancing continues to be a popular home loan option. Before you start comparing lenders, however, it’s important to take a 360-degree view of your options.
For many people, one of the benefits of homeownership is having the opportunity to use their home equity to access needed cash. While there are many options to get that money into the piggy bank, an attractive option for many is a cash-out refinance.
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.