If you have an FHA loan, the government wants to make it really easy for you to get a lower rate through refinancing. So easy, in fact, that they’ve actually waived a lot of the requirements that are typically necessary to refinance a mortgage loan.
Refinancing a mortgage loan is typically done for one of three reasons. The borrower is usually either lowering their monthly payment; trying to pay off their home faster in order to avoid extra interest payments; or they’re taking equity out of their home in order to put cash in their pocket.
Most of the time, if you have been paying your mortgage for more than a few years, and the current interest rates are significantly lower than yours, it’s a good idea to talk to a mortgage specialist.
You may benefit by getting a smooth refinance even if your home is worth less than you owe on your mortgage, and the government benefits because they aren’t insuring high-interest-rate loans.
There are a few rules you’ll need to follow to make sure you’re eligible before you get started, and a mortgage specialist from the Mortgages Diversified team at Summit Mortgage Corporation can help you determine your eligibility quickly. We’ll ask you a few questions to make sure you can financially benefit from the refinance and will let you know exactly what it might mean to your bottom line.
Remember: The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and you should consult a tax adviser for further information regarding the deductibility of interest and charges.