FHA Streamline Refinance

Interest rates are still low and if you have and if you have an FHA loan, the FHA streamline refinance program may make sense for you. Freddie Mac’s recent report revealed that:

• 30-year fixed-rate mortgages averaged 4.37% – down from last year’s average of 5.07%
• 15-year fixed-rate mortgages are at a record low of 3.82% – down from last year’s 4.47%
• 5-year Treasury indexed hybrid adjustable-rate mortgages averaged 3.55% – down from last year’s 4.51%
• and 1-year Treasury indexed hybrid adjustable-rate mortgages averaged 3.40% – down from last year’s 4.58%

Additionally, the Freddie Mac report data is set up regionally, and Arizona falls into the region that has some of the lowest interest rates.

Freddie Mac’s Vice President and Chief Economist, Frank Nothaft, made the following statement:

“Interest rates on 30-year fixed mortgages have remained below 5 percent for the last 19 weeks giving people ample opportunity to refinance their existing mortgage debt. As a result, homeowners reduced their financial obligations relative to disposable personal income during the second quarter of 2010 to the lowest share in almost eight years, according to the Federal Reserve . Currently, four out of five mortgage applications are for refinancing existing mortgage debt, based on figures by the Mortgage Bankers Association.“

Prospective homebuyers are not the only ones who can benefit from these low interest rates. Current homeowners can reap the benefits of low interest rates, too by refinancing their current mortgage. Refinancing can be beneficial by:

• Lowering your current mortgage rate and therefore lowering your monthly mortgage payment
• Improving the features of your current adjustable-rate mortgage (ARM) or by changing from an ARM to a fixed-rate mortgage (or vice versa)
• Building your home equity quicker or turning your home equity into cash

You may qualify for the FHA Streamline Refinance if you currently have an FHA mortgage loan, a popular option among many AZ homeowners. With the FHA Streamline Refinance option, you may not even have to re-qualify for a new loan.

You may also find it helpful to use an FHA Mortgage Calculator.

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