| FHA LEARNING CENTER |
FHA LEARNING CENTER
FHA LOAN FACTS AND ADVICE
On a FHA STREAMLINE REFINANCE, do I get to skip a mortgage payment? Also, can I take cash out or consolidate bills?
Answer: NO. With a streamline refinance you do not skip a mortgage payment. This is a myth. Since we want to close your new FHA loan at the end of the month, you pay only one month’s interest. This saves you money. Every borrower situation is different, but you typically would bring to closing what amounts to your full regular monthly mortgage payment, or less, depending upon what you owed. Since we are closing the new FHA streamline at the end of the month and paying off your existing mortgage, you would not have to pay your regular monthly mortgage payment that would have been due the next first of the month. You would not want to make two payments so close together since your current loan would be getting paid off. This process works efficiently, so your new loan funds within the same month we close the loan. Please make your regular scheduled mortgage payments on time until your loan is refinanced.
WE HELP YOU SAVE MONEY!
NO CASH OUT is allowed for a streamline refinance. For a streamline refinance, you are only allowed to change your rate and term of the loan.
* Remember to continue to make your regular scheduled mortgage payment until your current loan is refinanced.
Can I include the closing cost into my FHA mortgage?
Answer: YES. The closing cost can be included into your new FHA loan, keeping more money in your pocket. In addition, when you buy a home with a FHA purchase loan you can include up to 6% seller's concession towards closing cost into the mortgage. We can help you understand!
What is this mortgage insurance premium (MIP) and do I have to pay it?
Answer: YES. All borrowers must pay a mortgage insurance premium (MIP) to offset the insurance risk involved. HUD provides insurance for mortgages placed by private lenders and is designed to encourage lenders to make credit available in areas and to borrowers who may not otherwise qualify for conventional loans on affordable terms.
Can I finance MIP into my new FHA loan and what does it cost me?
Answer: YES. In a FHA loan we can build in your FHA MIP premium so you do not have to pay it upfront. We can also get you a MIP PREMIUM credit applied to you if you are applying for a FHA streamline refinance, since you already paid for it the first time. In addition, you have to pay MIP on a monthly basis along with your regular loan payment and the one-time fee is collected at closing, payable to the Federal Housing Administration. The fees are determined by a risk-based pricing system.
Is it easy to get approved for a FHA loan based on my credit?
Answer: YES. It is easier to qualify for a FHA loan than a traditional conventional loan, even if you have no credit or poor credit.
We can work with you! APPLY ONLINE!
What tax benefits do I receive with a FHA mortgage?
Answer: MANY. All borrowers’ mortgage interest and property tax payments are tax deductible. Your rent payment is not! You can also receive a tax credit if you’re a first-time home buyer. ALSO, your credit cards and installment loan payments you may be paying now are not tax deductible. When you consolidate your debts into a FHA debt consolidation mortgage, the interest payments are now tax deductible. We can show you how!
I am confused, I get advice from everyone and I need the right advice.
Can you help me decide?
Answer: YES. We all get advice from friends, family and co-workers. We respect their advice because they care about you. We care about you as well. Now is time to get the facts and get approved for a loan that’s best for you. At FHANJ123.com, our honest mortgage experts are well-trained, full-time mortgage professionals. We work hard for you and are constantly updated with knowledge in an ever-changing housing market. Apply online today to get started!
