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What is an FHA Streamline Refinance?

The FHA Streamline Refinance is a special refinance program only for homeowners with current FHA Home Loans. An FHA Streamline Refinance is the fastest, least expensive, and simplest way for FHA mortgage homeowners to refinance their Home Loans into
today’s lower FHA interest rates.

What are the Benefits of an FHA Streamline Refinance?

  • Does NOT require a new home appraisal – that saves you $650 to $750 dollars,

  • Your current employment verification is NOT required which means you do not have to dig-up paystubs, W-2 Statements, or your Tax Returns,

  • Only your FHA Home Loan Payment history is verified via your credit report, so the amount of debt and liabilities (a.k.a. DTI ratios) you have does NOT matter, and
  • Any bank asset verification required is usually only one current bank statement, but this too is not always needed.

What Would Be Your New Interest Rate?

Interest Rates for an FHA Streamline Refinance are based on your new loan amount and your credit score. For example, interest rates can vary between 3.25% for someone with a 780 Credit Score and 5.50% for someone with a 580 Credit Score.

Our goal with the “Zero Closing Cost” program is to save you at least 3/4% to 1% off your current FHA interest rate. Here’s an example of your potential payment savings per month:

• A $350,000 Loan goes from 4.75% to 3.75% (3.81% APR) Interest Rate = $204.86 SAVINGS / MONTH.

• A $450,000 Loan goes from 4.75% to 3.75% (3.81% APR) Interest Rate = $263.39 SAVINGS / MONTH.

How Does the “Zero-Cost” Program Work?

• FHA does not allow increasing your loan balance to cover your closing costs so we have to “pick-up” these fees, and your current loan amount stays the same.

• Your new loan amount will be your current principal balance plus the new upfront mortgage insurance premium, but you get a percentage credit for your previous upfront mortgage insurance premium based on how long ago you closed your loan.

• Your escrow account items like real estate taxes and home owner’s insurance must be paid for by the lender and your current lender will refund any amounts you have in your current escrow account.

• All closing costs like underwriting, title insurance, recording, etc. must be paid for by the lender.

• Depending on the time of month you close, you’ll be able to skip at least one month of your mortgage payment.

• You cannot take cash out when refinancing with an FHA streamline loan.

Can I Switch from FHA to a Conventional Loan?

As a Colorado homeowner whose home values have climbed over the past few years, you may also be eligible to drop your FHA mortgage insurance premiums (MIP) altogether via a refinance into a conventional loan. With Colorado home values rising, many FHA-backed homeowners now have sufficient equity to drop their FHA loan and refinance into a conventional without the additional cost of monthly private mortgage insurance.