FHA Refinance
Separating Myths From Facts

Everyone is talking about FHA refinance. Despite the myths, there are powerful benefits to refinancing with mortgage loans insured by the Federal Housing Administration. In my opinion, the greatest benefit is that FHA guidelines are more forgiving to less-than-perfect credit. So don't let credit problems stop you from pursuing this type of refinance.

Additional Reasons for FHA Refinancing

Very little equity in your home is required, important if your home appraises lower than you expected. If a low appraisal is preventing you from refinancing, consider an FHA refinance.

And how about this? Cash-out refinances are offered by FHA. That means you could lower your mortgage payment and come away with cash for home improvement or other purpose. Now that's generous!

I probably should note here that guidelines change from time-to-time, especially for cash-out. So check with your lender for current program availability.

FHA Closing Costs - Myths and Facts

Get the inside scoop on FHA closing costs. Separate the myths from the facts.

Myths Regarding FHA Closing Costs

  1. Myth - Streamline FHA refinance means no closing costs
  2. Myth - No out of pocket costs mean no closing costs
  3. Myth - No upfront expense equals no closing costs
  4. Myth - No points are the same as no closing costs

Facts Regarding FHA Closing Costs

  1. Fact - FHA refinancing does have closing costs
  2. Fact - Possible to refinance without upfront cost
  3. Fact - Possible to refinance with no out of pocket cost
  4. Fact - Closing costs can be financed using higher rates
  5. Fact - Loan amounts can include closing costs

Unlock the Code to FHA Requirements

Sure, I know if this is the first time you've heard of FHA it can seem a bit daunting. But you can do this!

To unlock the code of FHA loan requirements, use my easy FHA eligibility calculator. You can also learn more at FHA Home Loans and FHA Mortgage Loans.

Ask Kate

What if you could ask a real estate and mortgage insider anything you wanted about your home loan? Now you can!

Ask Kate is specifically designed to answer your questions and create dialog regarding mortgage financing.

You'll also find a wealth of information at Kate's Best Mortgage Rate Blog packed with tips, interest rate updates and a fresh approach to homeownership.

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