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what is Streamline Refinance?

Posted on: 18th Nov, 2005 04:01 pm
what is meant by the term streamline refinance?
Hi Robust,

This is a process practiced by many lenders to retain their customers. Government insurers like Federal Housing Administration (FHA) and Veterans Administration (VA) also have their own specific programs like fha streamline refinance and va streamline refinance respectively.

This can be particularly helpful if for example you decide to stay in a house for another 10 years but you have a 20 year mortgage. In that case streamline refinance can play a vital role in decreasing the mortgage payment to prepay the balance.

Hope this information will be useful.

James Hogg
Posted on: 18th Nov, 2005 04:12 pm
Hi Robust,

I want to add some more information on what has been already given by James.

Streamline refinance denotes the amount of documentation required to be performed by the lender and does not indicate that there are no costs involved in the transaction.

Lenders offer streamline refinance in various forms.

There are some guidelines to qualify for FHA streamline refinance which may be listed as follows -

  • The mortgage which is to be refinanced must be FHA insured
  • The mortgage should be current in order to be refinanced
  • Borrower's monthly payments on principal and interest should get reduced as a result of it
  • Streamline refinance may not be used to take out cash on the mortgage that is refinanced
The VA streamline refinance is meant for the active military personnel and the veterans. Some the advantages for this type refinance are -
  • The whole process is fast
  • Credit is not evaluated
  • Monthly payments are lower
  • In many occasions, appraisal is not required
  • Equity growth is faster when the term is reduced
Hope this information will help you.

Feel free to post if you have any more queries.

God bless you.

Thanks,
Samantha
Posted on: 18th Nov, 2005 04:40 pm
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