Sierra Pacific Mortgage can help refinance your current loan under the FHA Streamline process, which reduces the amount of paperwork and time needed to lower your monthly payment. For San Diego homeowners who want to refinance to loan rates that are near historic lows, this process has many advantages. To learn more about the program below, contact our office by calling 619-894-8943.
Closing Costs and FHA Streamline Refinances
Lenders may offer streamline refinances in several ways. Some lenders offer “no cost” refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction. FHA does not allow lenders to include closing costs in the new mortgage amount of a streamline refinance.
We Can Help Refinance Properties Throughout the San Diego Area
Sierra Pacific Mortgage has offices in over 45 states, and has been in business since 1986. Our San Diego office is located in Mission Valley, and our staff has the resources and dedication to help you. FHA streamline refinancing may be just one option of the many types of loans we offer. Contact our office by emailing us, or calling 619-894-8943.
How FHA Streamline Works
FHA has permitted streamline refinances on insured mortgages since the early 1980s. “Streamline refinance” refers only to the amount of documentation and underwriting that the lender must perform, and does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance are:
- The mortgage to be refinanced must already be FHA insured.
- The mortgage to be refinanced should be current (not delinquent).
- The refinance results in a lowering of the borrower’s monthly principal and interest payments, or, under certain circumstances, the conversion of an adjustable rate mortgage (ARM) to a fixed-rate mortgage.
- No cash may be taken out on mortgages refinanced using the streamline refinance process.