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FHA Streamline Refinances
Two or three years after buying a property with a 96.5 % LTV FHA loan , a borrower may be able to qualify for the FHA Streamline refinance program if the new loan amount will be at 80 % or below of the most recent estimated market value . Over the past several years , many homes have appreciated at 7 % to 10 % per year . If so , it may only take a few years for a property owner to reduce their LTV range from 96.5 % with monthly MIP requirements to 80 % LTV or below with no monthly MIP payments .
Ironically , these “ fast track ” refinance programs may allow the borrower to not provide any formal documentation for their current income , credit scores , or even need a formal updated appraisal . If the monthly MIP payment can be eliminated with the new FHA Streamline loan , the borrower may also get a partial refund of their upfront MIP payment that was due at closing when the home was purchased .
A new FHA Streamline loan could save a borrower $ 500 to $ 1,000 per month , depending upon how much their interest rate is reduced , their loan amount , and whether or not their monthly insurance premium was eliminated .
Whether you are a buyer , seller , or a real estate broker , the FHA loan option might be the best financing option of them all for the parties involved . This is especially true as both the 30year and 15year fixed mortgage rates hover at or near alltime record lows !
RICK TOBIN
Rick Tobin has a diversified background in both the real estate and securities fields for the past 30 + years . He has held seven different real estate and securities brokerage licenses to date , and is a graduate of the University of Southern California . Rick has an extensive background in the financing of residential and commercial properties around the U . S with debt , equity , and mezzanine money . His funding sources have included banks , life insurance companies , REITs ( Real Estate Investment Trusts ), equity funds , and foreign money sources . You can visit Rick Tobin at RealLoans . com for more details .
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