Since the economy is the way it is today, refinancing an FHA loan has been made easy. Also, this is one great way to lower you monthly payments to leave money for other expenses. There are a few requirements that must be met, but if you are wanting to stay in the home that you purchased it is a good idea to try an FHA Loan Mortgage Refinance.
The reason why getting an FHA Loan Mortgage Refinance is so easy is because most of the paperwork was done in the original FHA loan process. Since the home was already approved for an FHA loan, and the credit check was previously performed, and the appraisal was already completed for the home there is no need to do these steps again. The only catch on this is that you can only borrow as much as you did when you took out the loan originally.
There are four pre-qualifications that you must meet in order to qualify for the FHA Loan Mortgage Refinance.
1. The loan must be FHA insured.
2. The current loan must be in good standing.
3. You can not be behind on any payments.
4. The refinance must lower your monthly principal and interest payments.
Finally, there can not be cash left over as a result of the transaction. Meaning that you can only obtain what you need and not more. If you can meet these restrictions then an FHA Loan Mortgage Refinance may be the best option for you.
If you have less than perfect credit then click Bad Credit FHA Mortgage for more information.
Once you have met the pre-qualification specifications, then it is time to get that FHA Loan Mortgage Refinance processed.
Now that the bank has put your application through you are that much closer to gaining some financial freedom. With lower monthly payments to the mortgage company, you will now have more money left over every month to pay other expenses or possibly save up some money for a family vacation. Perhaps the extra cash could go towards the mortgage to pay it off sooner. Either way getting a lower monthly payment will be beneficial to you. No one can go wrong cutting expenses where they can.
One good thing about difficult economical times is most people will take a hard look at their financial position and see if there is a way to save money. Being able to reduce their monthly mortgage payments should be the first place to look and if you have a FHA mortgage then you need to consider a FHA Loan Mortgage Refinance.
Article Source: http://www.goarticles.com
