With rates dropping to the lowest they have been in years, current homeowners may be wondering if they purchased their home at a bad time. Savvy home buyers know that getting a great price on a home isn’t the only factor that leads you to getting a great deal on a home purchase; getting a great interest rate on your home loan is a huge part of making sure you are getting the home of your dreams at a price you can afford.
Because home interest rates have dropped so low over the past four years, home buyers who purchased homes during the peak of the economy may be feeling like they were taken advantage of. Many are paying off home loans that cost more than their current home is worth. They may be wondering how they can save money on their homes, and wondering what the quickest way is to do so. Because of the high demand for home refinances, lenders are offering an expedited kind of home refinance that requires no new paperwork, no up-front or closing costs, and can be approved and put into place in 30 days or less. This loan is called a Streamline Refinance and has been the loan of choice for thousands of homeowners over the past few years.
A streamline refinance is a basic home loan refinance that has been stripped down and simplified. These loans require no new paperwork, which saves the owner time on filling out new applications as well as money that would have been spent on filing and approval fees. In addition, any applicable costs that may arise during the refinance process are rolled into the cost of the home and can be paid off over the course of the home loan, making these refinances an affordable option for anybody who is interested in saving money on their home loan.
The process for applying for a streamline refinance is simple. To start, shop around at different lenders and see what their rates are. Depending on how much time you have left on your mortgage, different lenders will have different rates available, so it pays to look around and find out what your options are. With a streamline refinance you do not have to use your original lender to refinance, you can switch to a different mortgage company if you find somebody else who can offer a better rate than your current lender. Once you have decided on a lender, you will need to meet with them to discuss specifics about your loan and will most likely need to bring anybody else who is on your home lease to get their approval and confirm the decision to refinance. Once you have covered the details and confirmed the decision to refinance, the lender will draw up your new loan, and you will need to sign. The process needs to be approved by the major financial institution that actually does the lending, which causes the need for up to 30 days for a streamline refinance to process.
Once your loan is finalized, you will be on your way to saving money each month. Many homeowners are able to refinance at rates so low that they will save thousands of dollars over the life of their mortgage. If you are a current homeowner, consider how much you could save with a streamline refinance.