If someone has a chance to pay less every month and save money, they probably won’t pass up on the opportunity. This is especially the case for your mortgage. Our lenders believe that you should be striving to save money at any corner. This is the case to refinance your FHA loan. As long as the property is your primary residence, we can help figure out what type of refinancing is best for you. So, reap the benefits of refinancing and let’s see how soon we can start saving you money.
When to Refinance Your FHA Loan
Timing is always important when it comes to thinking about a refinance. You have to make sure that you’re getting the best interest rate and the lowest mortgage payment. There are several major times when completing a refinance are best. This includes when interest rates are low, if your home’s value has increased, or if your mortgage insurance is low.
You should always borrow when the rates are low. The Federal Reserve is responsible for regulating financial institutions. Therefore, they influence the country’s interest rates. Keep on eye on the trends and you’ll be able to predict when the mortgage interests rate will be lower. If your home’s value has increased due to rezoning or improvements that you’ve made, it puts you in a position to get a bigger loan. Lastly, the FHA sets mortgage insurance rates. If you want to refinance, wait until the FHA decreases that rate. Not only will it lower your monthly payment, but it will also decrease the overall burden on the loan.
FHA Refinancing is Better than a Conventional Loan
It’s smart to know about all the available options and how they compare to each other. When you compare an FHA loan to conventional loans, you’ll see some differences in favor of FHA. First, the rules behind an FHA loan aren’t very strict. This is especially true if you’re dealing with an FHA Streamline finance. When it comes to down payment requirements, it makes more sense for first-time homeowners to get an FHA loan. Though both loans have costs, conventional loans fees are usually higher. But, do keep in mind that if a lender offers FHA Streamline refinance at “no-cost”, there could be an increase in interest rates. It’s important to ask those questions and know what to expect out of the different options.
When it comes to refinancing, it can be just as overwhelming as taking out the loan in the first place. Our lenders are here to guide you through the experience and give you informed advice. What might be right for you might not work for somebody else. That’s why we work with you to give you a personalized experience.
Think that refinancing is in the cards for you? Let’s save you some money.