The FHA Streamline Refinance is for homeowners who currently have an FHA mortgage on their primary residence. There are two types of Streamline Refinances; FHA Streamline Refinance without an Appraisal and FHA Streamline Refinance with an Appraisal. The difference between the two is this: An appraisal is required if the new loan amount exceeds the existing mortgage's original balance. If the new loan doesn't exceed the existing mortgage's original balance, no appraisal is necessary.

The benefit of the FHA Streamline Refinance is that there is NO income/asset documentation necessary for this type of loan. The reason for this is because the homeowner has already qualified for the FHA Mortgage. The new transaction is simply to lower their current interest rate and therefore the monthly mortgage payment. Also, a full credit report is not needed; a simple mortgage rating reflecting credit scores from each of the three bureaus will suffice. This is to ensure the borrower(s) have a 620+ mid score and no late mortgage payments in the past 12 months.

BENEFITS of FHA Streamline without an Appraisal:

· A lower rate

· A lower payment

· The rate is assumable to potential homeowners when you go to sell your home

· NO appraisal means the opportunity to refinance even when a borrower owes more than the home is currently valued

· The borrower receives a refund of the unused portion of the Up Front Mortgage Insurance Premium through the transaction

· The ability to skip a mortgage payment!

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Here's an example to put the potential savings into perspective:

EXAMPLE: On a $250,000 mortgage, with an interest rate of 6.5%, on a 30 year fixed mortgage, the mortgage payment is approximately $1580.17.

POTENTIAL SAVINGS: By simply reducing the interest rate from 6.5% to 5.5% the monthly payment would be approximately $1419.47 a month. That's a monthly savings of $160.70 a month; $1928.40 a year; $19,284.00 over a decade and $57,852.00 over the course of the 30 year mortgage!

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