FHA Mortgage Refinancing Tips

by Chanelle from VA, Roy from MI, Adam from CO, David from MI...

Ask Kate for FHA Mortgage Refinancing Tips: Is FHA streamline refinance smart? What is the difference between the FHA insured mortgage and conventional home loan? Am I eligible for FHA refund? Can I FHA streamline refinance with a second lien? Who does a non-owner occupied FHA streamline loan?


FHA Insured Mortgage vs Conventional Home Loan... Kate, What is the difference between FHA insured mortgages and conventional home loans? Chanelle in Herndon, Virginia

***zz-portrait-left.shtml*** Ask Kate answers: FHA Insured Mortgage vs Conventional Home Loan. Hi Chanelle, the main benefits to FHA insured mortgages are less stringent credit standards, more relaxed income requirements, and lower down payments.

However, there are fewer bureaucratic hassles with conventional mortgages, especially when it comes to property requirements. There is also a wider range of conventional home loan products from which to choose.

Go here for my FHA insured mortgage series and my review of conventional home loan products.

Will FHA Streamline Refinance be Worthwhile? Kate, My FHA mortgage interest rate is 5.5%. I can streamline refinance at 4.1%. This would save me 200 bucks a month but I would have to start the loan term over. Is this smart? Anonymous

***zz-portrait-left-empower.shtml*** Ask Kate answers: Will FHA Streamline Refinance be Worthwhile? To refinance or not to refinance, that is the question! So go to my house payment calculator to calculate your proposed mortgage payments.

Then print the amortization schedule. Repeat to get your current loan's amortization schedule. How much will refinancing reduce your mortgage balance in another 3 years? Compare it to your current loan's schedule.

Now also compare the difference between the two to the mortgage refinancing costs. That's one way of deciding if your mortgage refi is worth the cost.

Am I Eligible for FHA Refund? Kate, Do I have a refund coming back to me from FHA? How can I find out? I had a FHA mortgage in 1973 and sold my home around 1985. Roy in Lansing, Michigan

***zz-portrait-left.shtml*** Ask Kate answers: Am I Eligible for FHA Refund? Hi Roy, If you got your FHA mortgage before September 01, 1983, paid on it for 7 years, and the FHA mortgage insurance was terminated before November 05, 1990, you may be eligible for a distributive share from FHA's Mutual Mortgage Insurance Fund.

Exceptions abound so contact HUD to see if you qualify for a refund at 800-697-6967 or write to US Dept of HUD, P.O. Box 44372, Washington, DC 20026-4372. Include your name, FHA case number, the date of mortgage pay-off, property address, and phone number.

Go here for information about getting FHA refunds for mortgages originated after September 01, 1983.

FHA Streamline Loan with Second Lien... Kate, Can I FHA streamline refinance with a down payment assistance loan attached as a second lien? Adam in Colorado

***zz-portrait-left-empower.shtml*** Ask Kate answers: FHA Streamline Loan with Second Lien. Hi Adam, Generally speaking, homeowners with secondary liens can still streamline refinance their FHA mortgage.

But refer to your original mortgage documents because the lender of the payment assistance loan must agree to subordinate the mortgage and sign an approved subordination agreement.

Here are my tips for getting a lender to subordinate a second mortgage.

Non-Owner Occupied FHA Streamline Loan... Kate, Do you know lenders that are doing a FHA streamline refinance for non-owner occupied properties? I know HUD offers it, but the lender that holds the current mortgage doesn't. David in Lowell, Michigan

***zz-portrait-left.shtml*** Ask Kate answers: Non-Owner Occupied FHA Streamline Loan. Hi David, Streamline refinancing for non-owner occupied properties (rentals) as you found out is not available through all FHA approved lenders.

Go to HUD's FHA Lender List where you can look up FHA approved lenders in Lowell, Michigan. Then pull out the elbow grease because you will need to start calling to see which ones offer the streamline refi for investment properties.

Go here for more on non-owner occupied FHA streamline loan and also to FHA streamline refinance for additional help.

Best wishes,


Ask Kate & Link to Kate

Ask Kate a question or skip to the bottom of this page to add a comment.

Would you also like to send a link to this page for your friends and family to see? Or link from your website or blog?

Simply add --
-- to your email, website or blog.

Have You Seen the Most Recent Ask Kate Answers

***zz-newsletter.shtml*** Back to FHA Loan Requirements from FHA Mortgage Refinancing Tips

Home to
Best Mortgage Rates from FHA Mortgage Refinancing Tips ***zz-below-the-fold-affiliate-link.shtml***

Tell a Friend

My goal is to empower homeowners! Please spread the word about FHA Mortgage Refinancing Tips on Twitter and Facebook or another group. Word of mouth is great too!

Click here to add a comment.

You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

Recent Articles

  1. Lock Mortgage Rates - How To Avoid Hidden Fees

    Aug 06, 18 11:58 AM

    If you lock mortgage rates over the phone, how do you protect against excessive points and hidden closing costs? Learn what to do when your lock is threatened.

    Read More

  2. Finding Low Down Payment Mortgage Financing

    Aug 06, 18 11:53 AM

    Getting a low down payment mortgage: Learn the first two steps to financing niche properties in resort areas. Tip: It's not about timing the real estate market!

    Read More

  3. Ten Best Kept Secrets to Low Mortgage Payments

    Aug 06, 18 11:45 AM

    Ask Kate's secrets to low mortgage payments help homeowners understand industry lingo related to refinancing. Learn how to get your best mortgage rate!

    Read More