The Federal Housing Administration offers home loans to first time homeowners as well as people looking to purchase a second or third or fourth home. However, in addition to these services helping people to get into a home in the first place, the Administration also offers the opportunity to enter into an FHA refinance plan which allows homeowners to save money in the long run. If your mortgage still has a considerable number of years before it will be paid off and your interest rate is higher than you would like it to be, you might consider rethinking your repayment plan for your home.
Sometimes people get rates on mortgages that are not ideal at all. If you bought your house a number of years ago, especially if you were young with a less than perfect credit history, your interest rate is probably at a rate much higher than it could be. If your mortgage will be paid off in two years, it might not be worth it for you to spend the time reworking your paperwork in order to get a lower interest rate, but if you still have 10-20 years left on your mortgage, a new plan might be worth the time.
When it comes to an FHA refinance plan, you will be able to get a lower interest rate than the one you were initially given if you borrowed from a bank or other lender. Since the Federal Housing Administration is backed by the government, you can be sure that this refinancing is a legitimate thing. In the 21st century, there are too many lenders out there with so much fine print that nobody understands all of it even if they take the time to read all of it. When it comes to working with the Federal Housing Administration, you can be sure that the services you are getting are the top of the line.
Perhaps it is time to start thinking about putting money into an account for your children to go to college, or perhaps you are getting ready to make some other large financial commitment. These are very good reasons to think about finding out if an FHA refinance plan could help you to put some of the money that you are currently putting into your mortgage into some other account, such as a college fund. The interest rates offered by the Federal Housing Administration are generally around 6%, which might be lower or higher than your current interest rate.
In order to find out if reworking your current mortgage would mean saving you some money, you will have to take a look at your current mortgage and interest rate. It is not true in all cases that going ahead with an FHA refinance plan will mean getting a lower interest rate.
In order to find out how you can rework your particular situation, visit http://www.fhatoday.com and contact the home loan specialists at HCI Mortgage. In order to make the process easier for their clients, they have made their application available online. Visit today to learn more.
