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Survey: 80% of Homeowners Concerned about Refinancing

Refinancing your home doesn't have to be a difficult process, especially if you are doing an FHA streamline refinance.

No matter how much I may think refinancing is a good idea for many homeowners, many are reluctant to start the process.

I spoke to Elizabeth this morning. Her parents had suggested she contact me to discuss a refinance to lower her interest rate. She originally closed in January 2009, did an FHA loan, with a rate of 6.5%. She shared with me, that she was reluctant to begin the process, as she said, it was tedious last time around. All of us hear this all the time, as some loans are not easy to do.

I told her we could do a streamline FHA loan, which required no appraisal, no income verifications and no assets. That we can refinance the existing mortgage only and closing costs need to be paid out of pocket. How much? I estimated $4,400. I loved her comment, where do I sign?

Her savings will be $316 per month, which means, that the costs are paid off in 14 months. That is a great return on invest.

Check out this article with the details on the survey conducted:

Survey: 4 out of 5 Homeowners shy about refinancing

Joe Petrowsky, Right Trac Financial Group.

860-647-7701 ex. 116

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Frances C Rokicki September 08, 2012 at 06:13 PM
Joe, It's such a good time to refinance! FHA is a product that helps many of my clients, as well. Is the appraisal free when they use the Streamline FHA to refinance?
Joe Petrowsky September 08, 2012 at 07:22 PM
No appraisal is required. When the streamline is done, the borrowers can only refinance the remaining balance, no cash out is allowed.
Oh Yeah...... September 08, 2012 at 08:00 PM
I don't understand how someone can get any loan with no income verification, and no appraisal of the property that will be the collateral for the loan. What if the property has declined and is no longer worth the amount of the new loan, and the applicant no longer has an income to support the payments?
Joe Petrowsky September 08, 2012 at 08:05 PM
This loan is specifically for folks that already have an FHA loan. The loans need to be current for at least 12 months. HUD figures if you are already making the payment at a higher rate, that you most likely will make the payments at a lower rate.
Oh Yeah...... September 08, 2012 at 08:37 PM
Thank you for your answer. So with no appraisal and no income verification or proof of assets, what paperwork is required when applying for this refi?
Joe Petrowsky September 08, 2012 at 09:19 PM
A copy of the note you signed at the time of the original closing, social security card and driver's license.
Jim Braun September 09, 2012 at 12:35 AM
Are the rates comparable to more traditional refis?
Joe Petrowsky September 09, 2012 at 09:43 AM
The rates are the same.

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