Refinance FHA Home Loan – Refinancing FHA Loans Info!

Are you looking for ways to save money in this tough economy? One of the first places to look is your mortgage payments if you owned a home. And if your mortgage in an FHA mortgage you may be able to save money with a Refinance FHA Home Loan.

First, an FHA loan is a loan that guarantees your lender that in case you default on your payments, the loan will be taken over by the Federal Housing Administration. In other words, your loan is guaranteed to be repaid and the lender has undertaken less of a risk.

It is not a government loan and no taxpayers’ money goes to fund the loan repayment. It is fully funded by the mortgage insurance premiums paid by the borrowers. It was created by congress in 1934 to provide a stimulus to the housing construction business. In that time it has been able to insure over 34 million home mortgages.

For most people the purchase of a home is the single biggest investment that they will make during their lifetime. Investments are made monthly in the form of mortgage payments and the capital builds in the form of equity.

After a few years there is an appreciable return on the investment and there may be reasons to Refinance FHA Home Loan for things such as college tuition or even a vacation to get away from it all. If you are still in the home as your principal residence you may have the option to Refinance FHA Home Loan.

Refinancing FHA loans have become very popular in the last couple if years because it is easy to do and the interest rates are at decades low. You can get

One of the most popular ways to Refinance FHA Home Loan is through a procedure referred to as cash out refinancing. If you own a home that has appreciated and the principal from your monthly payments has been allowed to accumulate you may own a lot more home than your present mortgage indicates. You would then Refinance FHA Home Loan for the current value and possibly at a lower interest rate. Your old mortgage would be paid off and you would be left with the new one and a cash settlement in your pocket.

If your original home loan is an FHA loan and is in good standing, and you do not want cash back you may be able to qualify for FHA streamlined refinancing. The advantage here is that your monthly payment is reduced so that you have extra cash on a reoccurring basis. Your loan payment time may be extended but there is a chance your interest rates may drop. Check with your loan officer to see if you qualify for streamlined refinancing and if there would be an advantage to you to do this.

Refinancing FHA loans is one of the best options to reduce your mortgage payments. You can get more information by clicking the links below. The ease and the lower interest rates are certainly good reasons to check to see if you can lower your mortgage payments with a Refinance FHA Home Loan!

Most Important Questions Homeowners Have About Home Loan Modification

The topic of home loan modification is a complex one so many homeowners who are undergoing the process of receiving a mortgage modification have questions or who want to avoid foreclosure. The following questions provide valuable information about some of the basic issues which come to the minds of homeowners regarding the mortgage modification process.

1. What is home loan modification?

Home loan modification is a process through which homeowners are able to renegotiate the terms of their loan with lenders in order to reduce interest rates, principal, or late fees. Modification of a mortgage may also include an extension of the term period or default into foreclosure.

2. Who can benefit from loan modification?

Mortgage modifications are generally given to those who are having trouble affording to make their mortgage payments under the terms of their current loan. By modifying a mortgage loan, homeowners can reduce their payments to an amount they can afford which, in turn, reduces the recurrence of late fees and penalties and, for some, results in the ability to pay off debt more quickly than under the original loan.

3. Do I need to hire a professional?

Many homeowners have no idea where to begin when considering mortgage modification so hiring an attorney or housing counselor to negotiate the process seems like the best way to go. This is a valuable option and a very costly one, but it is also possible for a homeowner to negotiate a home loan modification with his lender directly. In cases like this it is important for the homeowner to be prepared and to understand the process so that his lender does not take advantage of him.

4. Is government assistance available?

The Making Home Affordable program is a government-funded way to receive a modification without having to worry about the scams which have become so prevalent in the wake of the mortgage crisis. Homeowners who qualify for assistance through this program will have the opportunity to refinance their loan to make monthly payments more affordable and to avoid foreclosure.

Securing Home Loans With Bad Credit: Three Main Areas that Need Your Attention

Bad credit scores were once seen as a killer blow to those hoping to buy a new home. But the reality is that low credit scores are only treated as an indication of risk by lenders. So, it is possible to successfully apply for a home loan with bad credit, though there are conditions too.

While credit scores are not the be-all and end-all when applying for a home loan, lenders are not going to simply ignore the information either. After all, mortgages involved hundreds of thousands of dollars, so risks are high. For that reason, getting approval on home loans require some effort and preparation on the part of the applicant.

What this translates to is being able to meet the required criteria, standards set by lenders to sift through the applicants. Only those that qualify through the set criteria can ever hope of securing approved home loans despite bad credit. The trick then is to ensure that your application meets the expectations of the lender. There are three main areas to consider.

Offering a Down Payment

The significance the down payment plays in applying for a home loan with bad credit cannot be underestimated. There are a couple of reasons for this, with the principal being that the amount needed to borrow is reduced. This is good news, not just for the lender but for the borrower too. After all, they are less in debt and their monthly repayments are lower.

The typical amount required for a down payment is between 5% and 10% of the purchase price. This can often translate to around $30,000, depending on what the purchase price actually is. However, the chances of getting approval on home loans can be greatly enhanced because of the ability to save that kind of money too.

Basically, the financial discipline required to get a lump sum of that size together suggests a mature and responsible attitude – and borrowers with these attributes are much more likely to secure an approved home loan, despite bad credit.

Keep It Real

There is no point is looking to secure a loan that is too large to repay. This is where the other factors take precedence over a credit score when applying for a home loan with bad credit. Basically, it does not matter of an applicant has a perfect 800 score; if they do not earn enough money each month, then they cannot guarantee repayment.

For example, if a lawyer with an income of $8,000 wants by a home worth $1 million, then he may need to make monthly repayments of perhaps $3,500. But living expenses and existing debts might mean expenses of $5,000 are already being paid, so he doesn’t have enough. But for someone with an income of $3,500, getting approval loans of up to $250,000 is much more likely, if he has $1,000 free each month.

It comes down to the debt-to-income ratio, where lenders are unwilling to see applicants overextend themselves beyond the recommended 40:60 ratio. So, an approved home loan, despite bad credit, is possible if the repayments are comfortably affordable – regardless of the credit score.

Choose Your Lender

Finally, choosing your lender carefully is important. Some lenders add extra fees and charges to applicants with low credit scores, while others include heavy penalties for any kind of repayment delay. So, getting approval can be a nightmare with the wrong lender.

Generally, online lender offer the best deals, with lower interest rates and better terms than traditional lenders. And the number of approved home loans despite bad credit is proportionately higher. So, take time to look online before agreeing any home loan deal.