Mortgage rates go up and down, and consumers have the right to take advantage of the more favorable conditions. If your credit report was a bit lackluster when you purchased, and your current 30-year fixed has a higher interest rate than the current market conditions, an FHA Refinance mortgage may be a good solution. Ultimately, an FHA refinance loan can help consumers save cash. Use a mortgage calculator to see how much you could potentially save through an FHA refinance loan.
With a new loan, the interest may be lower, the monthly payments can be reduced and you can also switch from a 30-year loan to a 15-year loan, allowing the homeowner to build equity faster.
For decades the Federal Housing Administration (now part of HUD) has been helping people own their home. Whether individuals choose to buy a townhouse, condo or an unattached single family home, choosing an FHA refinance plan can help balance the household budget and keep that roof over your family’s head.
Many people who want to apply for an FHA refinance loan need not have exceptional credit. The HUD managed loans only require a low down payment, no income limitations and adequate credit scores. Those considering applying for a FHA refinance mortgage due to struggles with paying down their current payments are first encourage to contact their lender and see if something can be negotiated.
Since its inception in 1934, the FHA has helped over 35 million people obtain their dreams of owning property. One of the tools in their arsenal includes mortgages and FHA refinance plans to help individuals. Congress recently passed a measure to help people struggling with foreclosure to obtain FHA refinance mortgages to help lower their payments and keep their homes. This program became effective October 1, 2008 and at this point in time, will continue until September 30, 2011.