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If you’ve been debating about whether or not home refinancing is the right choice for you, the best way to decide is by exploring a few of the best reasons available. Below are some of those reasons.

Reason #1 – Saving Money

Probably the best reason for home refinancing is to save money, but there are several ways to accomplish this effectively. First, you can simply get a new loan which has a lower interest rate and that translates into lower monthly payments. This can be a good choice if you took out a loan when rates were higher or when your credit score was lower.

Another way to save money is by extending the life of your loan. If you currently have a 15 year mortgage, you can cut your monthly payments drastically by doing your home refinancing with a 20 or 30 year loan. Of course, you will pay more in interest over the life of the loan but if you need those lower payments today, this is a good option.

Reason #2 – Accessing Equity

Another popular for home refinancing is to gain access to the equity in your home. Equity is the difference between what is owed on the home and its value. For example, if your home has been appraised at $250,000 and you have an outstanding mortgage for $175,000 on the home, then your equity is $75,000. By doing home refinancing, you can sometimes tap into that equity to help pay off bills, pay for your child’s college, or do major home renovations that could increase the value of your home.

Basically, you’ll be taking out a larger loan but if you’ve played your cards right, then the monthly payments should be more reasonable than taking out financing to cover those other expenses separately.

Reason #3 – Consolidating Debt

Many people choose to do some type of home refinancing when they have a great deal of excess, high-interest debt they need to get out from under. Generally, the interest rates for home loans are a great deal less than for personal loans and for credit card debt. If you want to cut your overall costs and improve your credit score quickly, taking out this loan and using the equity in your home to pay off some of these bills is a wise choice.

If you choose this option, you need to make sure you aren’t going to make the cardinal mistake of running up all of that debt all over again. That usually leaves you with a higher monthly mortgage payment, as well as more of those bills. Plus, if you’ve succeeded in improving your credit picture, you could access even more credit which could deepen your troubles. Again, this is not a good idea.

Other Reasons

Besides the reasons listed above, people do home refinancing for a wide range of reasons. You need to decide if the choice is right for your finances before you make this commitment, however. 

Don’t jump into Home Refinancing without considering some of the best reasons to take that plunge. You can learn more about them at http://www.homemortgageloan-refinance.com/Bad-Credit-Home-Loan-Refinance.php.

Article Source:http://www.articlesbase.com/mortgage-articles/three-solid-reasons-for-home-refinancing-906935.html

Interest rates are at all-time lows, causing many people to consider refinancing their home loans to take advantage of the better interest rate and lower monthly payments. Individuals with high interest mortgages have been able to refinance their home with a lower interest rate and therefore lower their monthly payment by hundreds of dollars. Does it make sense for you to refinance your home? Here are a couple examples that might help you determine if refinancing is a good option for you:

Example One: The Browns have a 30 year fixed rate mortgage of $200,000 and an interest rate of 7%. They pay $1,330 per month currently. The Browns plan to live in this home for at least ten years.

They expect to be able to refinance their mortgage to a fixed rate of 5.2%. In this situation, they would save $232 per month, with a new mortgage payment of $1,098. The mortgage company said the closing costs would be $3,200. Is this a good deal?

It would take 14 months of saving $232 per month to recover the closing costs. Since the family intends to stay in the home for ten years, this refinance makes sense and will save the family quite a bit of money.

Example two: The Carltons also have a $200,000 mortgage with an interest rate of 6%. Their monthly payment is $1,199 a month. They could refinance their home loan to an interest rate of 5.4% on a 30 year term with closing costs of $3,800 and a new monthly payment amount of $1,123. They save $76 per month. This family would need 50 months of saving $76 to recoup their $3,800 closing costs. Since the family only plans on staying in the home for another 5 years or so – it doesn’t make much sense to refinance in this situation.

Things to Consider Before Refinancing Your Home

Time: How long do you consider staying in the home after you refinance? If you only plan to live in this house for about five years, you’re going to find it hard to make mathematical sense out of refinancing a home with closing costs. Justifying the closing costs typically requires that you’re going to remain in the home for several years after refinancing, with monthly savings to compensate for the amount you pay in refinancing.

Savings: If your monthly savings after refinancing is minimal, you can probably find other areas of spending in your budget to to reduce expenses to the same amount. The benefit of finding other ways to save money is that you aren’t required to pay closing fees in order to benefit from the savings.

Conclusion

Before jumping on the chance to refinance your mortgage, you really need to weigh the variables to determine whether you are really saving enough money for the effort. You should run the numbers on your own situation before you commit yourself to a re-finance.

Whether you choose to refinance or look for other ways to reduce spending in your budget, such as a balance transfer or reducing unnecessary expenses, use the savings to your benefit by paying down debts and building a savings account or retirement fund.

Elizabeth Williams, Editor-in-Chief for CreditCardFlyers.com

CreditCardFlyers.com is a consumer’s haven for credit cards and balance transfer information and offers. We help you find the right balance transfer card to meet your financial needs and you can compare and apply for your 0 balance transfer offer online.

Article Source:http://www.articlesbase.com/mortgage-articles/does-it-make-sense-to-refinance-your-home-886045.html

If you are thinking of refinancing your home, consider these refinancing tips from mortgage experts:

Determine your reason for refinancing - Determine the reason for which you wish to refinance your home. You can save much by refinancing your homes. You may think of refinancing either to lower your monthly mortgage payment or to get cash or to get into a fixed mortgage or to pay off credit cards and other debts.

Search for low cost home refinancing loan - You can either get reference from your relatives, friends or neighbors to find out a low cost refinancing option. You can find many low cost refinancing home loan options on the web easily and quickly.

Make sure to discuss your financial position and future plans with your mortgage expert - When interest rates fall, make sure to discuss your entire financial situation and goals, and your future plans before making any final decision to choose a refinancing option. Also ask the mortgage expert to discuss about the loan term length, monthly payment and your total interest rate.

Choose a refinancing option that meets your goal - Once you find out the exact reason for refinancing your mortgage, you can choose a refinancing loan that will meet your short term and long term financial goals. There are many home refinancing solutions available to fit your financial requirements.

See whether the refinancing option is beneficial to you - Once you find out the exact reason for refinancing, you may consult with your mortgage expert whether you can be benefited if you refinance immediately or after some days. Make sure that you are not planning to move out of the home within the next few years. This is very important because if you consider leaving the home after some years, then the home refinancing option will not be beneficial for you.

Things to consider before accepting a refinancing offer - Do not blindly accept the first or second refinancing offer. Try to communicate with a lender in such way as if you already have another better offer.  Do not make the lender feel that you absolutely need this loan now. Have knowledge of the rate trends and calculate loan rates based on the lowest rates offered. You can calculate the fees, insurance and tax payments using amortization calculator. Select only the loan with lowest interest rate and other rates that are within your reach.

Things to do for easy approval of your home refinancing loan - Once you choose a mortgage lender and a refinancing loan option, you need to fill a loan application form. You must provide a variety of documents in order to get your loan approved. The list of documents you need to show depends on the lender, the loan option, and your personal financial condition. The list of some essential documents is Income  proof, past employment and income history, original pay stub for the last month, asset information copy, bank account details, Copy of title insurance, etc. If you are ready with the essential documents before you apply for a refinancing loan, you can get a quick refinance loan approval.

Lock in your loan rate when you apply for a refinancing mortgage loan - As mortgage rates can vary from the day to day, you may “lock in” your interest rate at the time of applying for a refinancing loan so as to guarantee you the prevailing loan rate for a specified period of time.

Sharonsamraj is an article writer for casanoblemortgages.com. He written many articles in various topics such as Vernon mortgage broker, Mortgage brokers Vernon. For Further details on Penticton mortgage brokers, Mortgage brokers penticton please visit www.casanoblemortgages.com/

Article Source:http://www.articlesbase.com/mortgage-articles/home-refinancing-tips-from-mortgage-experts-881473.html

Hey all - Happy Monday (blah - ).  Here is a good article on Loan Modifications vs. refinancing your home loan.  A loan modification sounds scary - so many folks do opt for refinancing, however, a loan modification is often the better way to go.  Enjoy.

Many people can’t seem to figure out which is better, loan modification vs mortgage refinancing making it difficult to decide which they should choose. Both of these options can help someone with an unaffordable mortgage but both seem to take some time to get into as there is lengthy application processes involved with both.

With loan modifications you won’t find yourself having to pay any cost for doing it or have to go through an appraisal of your home, but with home refinancing you could find yourself having to pay closing costs and could require an appraisal of your home being done.

One benefit of refinancing is that the time frame is a lot less then modifying your loan. It can take approximately 30 to 60 days for a refinancing to be done, but it could take between 30 to 180 days for a modification which is causing many more people to turn to mortgage refinancing instead.

Most don’t realize that with mortgage refinancing you need to have a somewhat better credit score then you’d need with loan modification as it doesn’t look at what your credit score actually is. This is the main cause of many being turned down for home refinancing which leads them to applying for loan modifications.

It seems that modifying loans is becoming the more popular option for many homeowners as refinancing has many downsides compared home modifications.

For those homeowners considering either of these options you should take the time to go through the many pieces of information that are made available to really determine which option is right for you. With most people being turned down for refinancing because of their credit score many more are turning towards modifications instead.

If you’ve considered doing either a mortgage refinance or a loan modification you should make sure to talk with your mortgage broker to find out which option is right for you.

There are many differences between the two options so you need to look at loan modification vs mortgage refinancing to really see which option is right for you. There are many pros and cons for both options which make it hard to decide which option is better for you, but when you sit down and determine what option is better you’ll easily see the differences right away. Make sure to ask tons of questions and you could be on your way to finding the right refinancing option for your home quickly.

For more resources on home loan modifications, visit the #1 loan modification resource on the net: http://HomeLoanModifications101.com

Article Source:http://www.articlesbase.com/mortgage-articles/loan-modifications-vs-mortgage-refinancing-which-offers-a-true-advantage-871879.html

Are you looking for some loan modification help but don’t know where you should look for it? You are not alone. There are many people looking for the same kind of assistance but can’t seem to figure out exactly where they should get it.

If you are one of the millions of homeowners needing a little assistance with your loan modification you should right away contact a specialist in this field as they’ll have all the resources and information to assist you in answering all the questions you might have.

There are many different questions that you could probably come up with as a homeowner so you are fully aware that a modification to your loan is exactly what you need to get back on track financially. Not all homeowners are really aware of the options that they have when it comes to their home loans and the modifications that can be done.

Don’t be one of the many that are mis-informed about your loans and actually go and sit down with your mortgage broker. Even though the many new loan modifications are new the mortgage brokers have enough information that can really help you determine what options would be right for you.

As a homeowner it can be quite saddening if you find your home reaching foreclosure because you are unable to make the necessary monthly payments. You’ve worked hard to keep your home and when you are hit with some financial struggles it can be life shattering if the last thing you have is being taken away.

With the amount of people loosing their homes to foreclosures there are many more mortgage brokers wanting to help those out that they can so that those homeowners and families can keep their homes. Mortgage brokers are offering various options including loan modifications and mortgage refinancing. These are just two of the options available and you could get some more personalized features to really help you out.

There are many opportunities available to get some loan modification help and all you need to do is look for it and you’ll get it. There are various associations offering the help you need to get yourself back on track financially. It just requires a little requesting and someone will be there ready to help. Don’t just sit back waiting for someone to come to you to help you as it will not happen so go to them first.

For more information about getting loan modification help, visit the #1 loan modification resource on the net: http://HomeLoanModifications101.com

Article Source:http://www.articlesbase.com/mortgage-articles/homeowners-looking-for-loan-modification-help-873207.html

Happy Weekend all!  It is certainly good to see jumbo mortgages being talked about again - I welcome this article for that reason alone.  A sure sign that real estate is at least not sliding further is a continued market in the upper-end homes.  Jumbo mortgages fit this small, but very profitable niche.  Enjoy.

A “Jumbo” mortgage is defined as a loan that is too large to be bought by Freddie Mac or Fannie Mae. Depending on the state, limits range from just under $420,000 to $730,000.

When the credit crisis was at its peak, jumbo mortgages were hard to find. Lenders looked at them as an unecessary risk and these mortgages were down 70% in 2008 from prior years. Now that the dust has cleared, some companies are considering the jumbo mortgage market a new opportunity. As mortgage rates continue to drop, so do rates for 30-year jumbo mortgages.

Recently Bank of America began publicizing a program offering 30-year fixed rate mortgages with interest rates in the upper 5% range. ING Direct has been offering jumbo loans in the for close to 5% for several months.

Guy Cecala, publisher of Inside Mortgage Finance claims that the Bank of America rates are lower than main competitors Wells Fargo, J.P. Morgan Chase and Citibank, and that it won’t be long before others will be jumping on the bandwagon. He was right.

First Internet Bank just announced a “hybrid” adjustable-rate mortgage with a fixed rate for five or seven years (may be reset annually to an adjustable rate), with an interest rate of 5.375%, with no points.

GMAC is also advertising competitive jumbo loans where the initial required payment is 20 to 30 percent, unlike those during the boom that were offering 100 percent of the home’s value. As a recipient of funds from the Obama bailout plan, GMAC is modifying between 7,000 and 10,000 loans per month; a possible 100,000 by the end of the year. ResCap Chief Executive Officer Thomas Marano estimates that jumbo loans may increase from 5 percent to 15 percent of the company’s volume over the next year.

He commented, “You have an opportunity to originate jumbos the way they were originated 5 to 10 years ago, where the borrower had some real skin in the game,” Marano said. “We’re originating some of the highest-quality jumbos that I’ve seen in the past 10 years.”

Keith Gumbinger, Vice President for HSH, comments that jumbo loans don’t get the same number of institutional buyers as do regular loans, as a result, when money is tight, jumbos aren’t offered as freely. Today many investors are transfering their assets from the stock market to more stable investments, whereby increasing the bank’s cash flow and enabling them to offer more loans. In addition, many lenders are receiving support from the federal government and the low interest rates are prompting more home owners to refinance.

Instead of many small loans with quick turnarounds, a jumbo loan gives the bank a long term asset with a 6 to 7% return.

The requirements for jumbo mortgages vary from lender to lender, and are definitely much tighter than in previous years. Bank of America requires a minimum downpayment of 20% (or 20% home equity on a refinancing), a 720 credit score or higher, and six months of reserves in the bank. ING requires a minimum of 25% down.

Like any mortgage, shop around for the best deals, comparing all the fees and costs associated with each.

Joshua Sloan is your experienced REALTOR® for San Diego real estate. Visit his website at SanDiegoRealEstateBuzz.com to find short sales in San Diego, see the latest property listings, and more.

Article Source:http://www.articlesbase.com/mortgage-articles/jumbo-mortgages-making-a-comeback-871740.html

Hey all - I hope your mortgage world is doing o.k. these days - these are crazy times.  Good article below on some things to consider when looking at refinancing your home.  Gather as much refinance information as you can prior to starting the process - that’s a key in my opinion.  Enjoy.

Who wouldn’t enjoy a break on their monthly mortgage payment? On the other hand, how can you be sure that the timing is right to refinance? Are the rates and the current mortgage market the best indicators? What about other factors having to do with your mortgage, such as mortgage insurance, rising payment amounts, and the long-term goals you have for paying off your loan? Do you have needs such as debt consolidation that a refinance could address? All of these are important points to keep in mind when considering the right time to refinance. What you must do is evaluate the critical factors and how to balance them in your decision-making in order to most wisely choose the time and manner of your refinance.

Of course, continuing to pay attention to rates, even after you close, can save you a great deal of money. How much you pay on your mortgage each month is directly related to your interest rate. If your first mortgage has a fixed rate, you can easily compare it to current mortgage rates and know with relative certainty whether refinancing now makes sense. In the absence of any other pressures, as long as the rate you have on a fixed rate loan is lower than current rates, you should probably stick with it.

On the other hand, if you have an adjustable rate mortgage (ARM) and rates are rising, your payment will also be increasing. In this case, consider how much rates will climb and how much more you’ll be paying per month. You may consult with a financial planner or loan officer to get their opinions on market trends. With their advice, you can decide if refinancing to a fixed rate now is more beneficial in the long run.

You’re probably beginning to see that the right time to refinance has more to do with you than with the mortgage market. Sure, low interest rates are a factor, but your individual situation is the greatest indicator. For example, are you paying on a loan that requires you to carry mortgage insurance? Have you built up enough equity to drop that insurance through a refinance? If so, refinancing could save you hundreds each month, even if rates have remained unchanged or have increased slightly.

Did you sign a three- or five-year adjustable rate mortgage (ARM) in the last few years? If so, be sure you know when your introductory term expires. You’ll want to get a head start on refinancing your loan unless you’re prepared to begin making a much higher payment. This type of loan allows you to make reduced (usually interest-only) payments for the first several years. After that time expires, the loan reverts to a regular amortized loan with principal and interest payments. Unless your income has increased significantly, these payments could be an ugly shock. Don’t wait for this unpleasant surprise! If the introductory period on your three-year, five-year, or other loan is set to expire, beat increased payments to the punch before the first one hits your mailbox.

Sometimes, lowering your mortgage payment is not the primary focus. Are you thinking of paying down some of your high-interest debt? Do you have a child going off to college soon? Dreaming about a newly remodeled kitchen or bathroom? Getting cash out of your home may be the ticket. You can get cash out through a refinance which will allow you to draw against the equity in your home without taking out a second mortgage.

All of these and many others make up the list of reasons homeowners may choose to refinance their homes. Current interest rates are only part of the equation. Establish your goals, learn about your options, and make the decision that’s best for you and your timetable.

Source: http://www.bills.com/best-time-to-refinance/

Justin has more than 5 years experience as a financial adviser, his key areas are loan consolidation, debt relief, mortgages etc.

Article Source:http://www.articlesbase.com/mortgage-articles/best-time-to-refinance-867834.html

Home equity loans or lines of credit allows you to borrow money, using your home’s equity as collateral where equity is the difference between how much the home is worth and how much you owe on the mortgage. A home equity loan (or line of credit) is a second mortgage that lets you turn equity into cash, allowing you to spend it on home improvements, debt consolidation, college education or other expenses.

Advantages and Disadvantages of the home equity loans

Advantages: There are many other advantages of home equity loans. The loan payments on these loans are tax deductible. Home buyers can take bigger sum equity loans. These loans also carry a low rate of interest. But it’s best to heck the prevailing interest rates from many lenders and banks before you actually go in for a loan. It’s also important that the borrower check the credentials of the lenders before applying for a loan. They are many scam and con artists who can take away your home in lieu of giving you a home equity loan. The borrower also risks losing the home in case they default on the loan.

The two major advantages of borrowing with a home equity loan are lower interest rates and potential tax savings:

- The interest rate you will pay on the average home equity loan is generally lower than the interest rate you will pay on the average credit card or any other type of non-secured debt.

- For home equity loans, you can generally deduct the interest you pay. The interest you pay on credit cards and other types of personal loans is generally not tax-deductible.

Disadvantages:

Risk of losing home. If you can’t repay or refinance the loan, then you may be forced to sell or lose your home. Your home is the collateral for the loan. Being late or missing loan payments can trigger foreclosure within 60 to 90 days.

Rising interest rates. With a variable interest rate, most home loan rates change when the economy changes. This means your monthly payments can rise and fall. Be sure you know what the cap is on the loan’s interest rate. The cap sets how high your interest rate can increase each year as well as how much it can increase over the whole loan time period.

Fees. Lenders can charge a variety of fees including origination, application, and withdrawal fees. Be sure to ask about all possible fees.

The major disadvantage of a home equity loan is that you are using your house to get approved for the loan. For some people who have flawless credit this might not be a problem, because they can insure themselves that they will do whatever it takes to pay off their loan. However, instances have arisen where individuals have forgotten or were they are not financially able to pay for their loans. So at this point you’re wondering what happens if you cant pay your home equity loan? With all financial decisions come risk and the risk of losing your home wouldn’t be an option, especially if you have a family.

Home equity loans are best used for home improvements that will increase the value of your home. Some improvements, such as swimming pools, don’t usually increase the value upon resale. Others, such as additional bathrooms, living space, renovated or updated kitchens, etc., generally do increase the value of your home.

The bottom line is this: if your home is worth more than you owe on it, a home equity loan can be a great way to take advantage of this, but it can also get you into serious financial trouble, and should be used wisely. Why not use the equity in your home as part of your retirement fund instead of spending it on things that may not last?

Over the life of home loans - sometimes up to thirty years - your financial circumstances can change dramatically. Starting a family, changing jobs, children leaving home and many other factors can alter your financial circumstances over the term of the loan. A home loan that is right for you at the beginning has the potential to become the worse mistake you ever made.

Refinancing can be useful and financially rewarding but it can also carry risks. It takes time and costs money, so before you decide to change to another lender, ask yourself if it is really the right thing for you.

• Are you happy with your existing lender? Have they been professional and helpful in all the dealings you’ve had with them?
• Are you happy with your existing loan? Is the interest rate comparable to other lenders? Could you use some extra features offered with other products?

Has your financial situation changed? Maybe you’ve started a new job or become unemployed.

Author has a versatile knowledge on financial consultancy Services and particularly on Home Loans and Home Equity Loans. He has expertise in mortgages recommendations and evaluation for any project.

Article Source:http://www.articlesbase.com/mortgage-articles/home-equity-loans-advantages-disadvantages-864727.html

Refinancing rental property can be a smart move to reduce your interest rate and monthly payments so that you can enjoy more cash flow and rental profits month to month.

Another way that you can benefit from refinancing rental property is to do a cash out refinance to tap into your property’s equity. This is a way for you to get you hands on ready cash without having to sell the property and more importantly, without having to pay capital gains taxes.

Refinancing Your Rental Property to Enjoy Lower Mortgage Rates

With a conventional refinance, you simply choose a new lender who will pay off your old housing loan. You’ll owe the remaining amount to the new lender at a lower interest rate.

The key to benefiting from refinancing rental property is to do it at the proper time.  Let’s assume, for example, that you owe $50,000 on a rental property valued at $150,000 and your interest rate is 7%.  Since you purchased the property, interest rates have fallen to 4%.

You could do a straight rental property refinance and take out a new loan for $50,000 at 4% interest. Your mortgage will be significantly lower, but your tenants are still paying the same monthly rent. This translates to extra cash in your pocket each month plus less total interest paid over the life of the loan.

Refinancing to Cash Out Money from Your Rental Property’s Equity

Instead of borrowing the exact amount you owe from the new lender, you can actually borrow more. Returning to the same example above, let’s say you still owe $50,000 on your property that is worth $150,000. You can choose to borrow $100,000 instead and walk away with $50,000 in cash.

This is a great way to access the equity in your property if you don’t want to liquidate and sell off the asset.

If you are thinking that this will increase the amount of interest you pay over the life of the loan, you are correct. But do realise that this is offset in part by your renter’s payments and you could very well make other investments with the cash you pocket.  Best of all, you won’t have to pay a single in capital gains taxes.

Which Type of Refinancing is Right for You and Your Rental Home?

Refinancing rental property to lower your interest rates and monthly mortgage payments idea if you don’t need the extra cash or if your goal is to pay off the property quicker and owe it debt-free.

On the other hand, a cash out refinance is a smart move if you need the cash to pay off other high interest debts such as credit card bill or car loans. You can also reinvest cash in other investments or spend it for your own enjoyment such as a new deck for your house or a family vacation. 

Teo Zhenjie has been showing landlords how to manage their tenants and rental property effectively on Propertydo http://www.propertydo.com/ - To learn more important tips on refinancing rental property, visit his website today for step-by-step real estate guides, free resources and forms.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo.com http://www.propertydo.com/ - Visit his website today for step-by-step real estate guides, free resources and forms.

Article Source:http://www.articlesbase.com/mortgage-articles/how-refinancing-rental-property-can-slash-your-mortgage-loans-861964.html

Below is an excellent article on an FHA home loan refinance program called the FHA Streamline or 203K program.  If you’re home is needing repairs to sell or you just want to make improvements, the FHA 203K program can be a wise choice.

We all have heard about the negative news lately about the real estate market and the glut of home foreclosures on the market.  You may be thinking now is the time to take advantage of the low interest rates and purchase a foreclosed home.  But the problem may be some of the foreclosed homes you have seen need a lot of repairs and improvements.  You don’t have the cash to make these repairs.  Well, there is good news and it comes in the form of the FHA 203K Rehab Loan.

When I refer to the FHA 203K Rehab Loan I am referring to the FHA Streamlined 203(k) Limited Repair Program.  It is for improvements and repairs that don’t require structural improvements.  It is not for total renovation of a property but for repairs not totaling more than $35,000.  The FHA 203K Rehab Loan did have a minimun of $5,000 costs of repairs, but that has been eliminated.

There are many benefits for using a FHA 203K Rehab Loan for improvements to a house you are planning on buying.  Also, you can use this FHA Loan Program to refinance your existing mortgage and do repairs and improvement to your existing home.

Some of the benefits of a FHA 203K Streamlined Rehab Loan Are:

1.  The borrower can take out just one mortgage to cover both the purchase of the property and the cost of upgrades.  This loan can be amortized over 30 years, unlike a conventional rehab loan that has a shorter amortization period and higher interest rates.

2.  Like I said before that there is no minimum cost for repairs.  You could use it only to put in an energy-efficient furnace.

3.  There are many different repairs and improvements you can use the loan for.  You can read an article on the list of improvements by clicking on the links at the bottom of this article.

4.  This is not a government loan, it is a FHA insured loan.  There are a lot of FHA Approved Lenders across the country.  Because it is insured by FHA, the FHA Approved Lenders are more willing the make the FHA 203K Rehab Loan.

5.  On of the biggest benefit is the low down payment of 3.5%.  Most conventional rehab loans require a 20% down payment.

6.  Lower interest rate.  Because FHA insures the loan, FHA Approved Lenders can make loans to people that don’t have perfect credit.  That doesn’t mean any one can get a loan, you still have to prove you can pay the loan back.

7.  The FHA 203K Streamline Loan eliminates the need for a consultant, engineers, plans, and consultant’s fees.  This speeds the process up and lowers the costs of the improvements.

As you can see if you are considering buying a home that need repairs or want to make improvements to your own home, the FHA 203K Rehab Loan could be just what you are looking for.

P.S.  Want More Information On FHA 203K Rehab Loans Or FHA Loans?  You can find more articles on what improvements or repairs  are eligible for the Streamlined 203K Loans by clicking on the links below.

If you are considering a FHA 203K Rehab Loan or any other FHA Loans you can get more articles by clicking here FHA Loans Information.

You can information on FHA home foreclosures for sale by clicking on How to Buy HUD-FHA Homes for Sale.

Article Source:http://www.articlesbase.com/mortgage-articles/fha-203k-rehab-loan-make-improvements-to-your-home-with-fha-203k-rehab-loan-858975.html