If you are wondering if you will save money with an FHA mortgage refinance, you will for sure. Mortgage rates are some of the lowest that they have ever been. This means for many current homeowners that they are able to cut down their monthly mortgage payments by a lot, in some cases some homeowners are able to cut down their monthly mortgage payments in half. The best part about these mortgage refiance rates being so low is that you can lock into a good rate and this can save you money for years to come and allow you to put more equity into your house.
The main question for most homeowners is are they even able to do a mortgage refinance? Because of the current economic crisis that we are going through and all of the struggles in the housing market there are lots of people that are upside down on their homes. If you are upside down on your home you are not able to do any type of a mortgage refinance.
To do traditional refinancing most banks will require you to have at least 20% equity in your home for them to refinance you. For many homeowners this is hard but for the ones that have this equity they are able to really capitalize with a mortgage refinance.
The only option that home owners looking for a mortgage refinance that don’t have lots of equity in their homes have is an FHA mortgage refinance. An FHA mortgage is lent by private lenders but is insured by the federal government. With an FHA refinance you are able to do your refinance mortgage if you have only 3.5% equity in your home. Also to qualify for an FHA mortgage refinance you do not have to have all of the other requirements that most traditional companies require, like credit, income and assets.
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