What are your options?
Refinancing allows you to improve your loan terms, lower your payment, and possibly pay it off quicker. There are other refinance options available if you find that an FHA streamline refinance is not for you. Which one you should choose depends entirely on your unique situation and needs, as each comes with its own benefits.
FHA Simple Refinance
The application process involves more paperwork and requirements (equity in your home, debt-to-income ratio, etc.) than a streamline, but it could also give you more options in the end. You may change your loan type, term length, qualify for a lower interest rate, or lower or get rid of mortgage insurance costs.
FHA Cash-Out Refinance
This is the only option that allows you to get cash back from a refinance. If you need to pay off a debt or complete a home renovation, this may be the pick for you. With a cash-out refi, you’ll borrow a larger loan amount than you have and get cash for the difference between your new loan amount and the amount you owe on your home.
Do It Yourself Mortgage Analysis
Common FHA Refinance Questions
With an FHA loan, you have to wait six months after closing on your home before you can refinance
Yes, you can refinance from a conventional loan into an FHA. It’s often easier to qualify for an FHA refinance and you may get a lower rate, especially if your credit is not great.
Yes. Loan origination fees could range from 1-3% of your loan and are due at closing.