FHA Streamline Refinance

Happy New Year,

Okay, I'm late, but I'm just recovering from all of the champagne and Mimosas to help me get through this tumultuous real estate and mortgage market. As you know, it's hard out here, but there are rays of light for those who need a little Vitamin D!

On the mortgage front, something for you to investigate immediately is the FHA Streamline Refinance--but don't get too aroused just yet! I know you've been salivating over those low, low, low interest rates and you want to refinance, but it's only for those who currently have an FHA mortgage. One of the beauties of the FHA Streamline Refinance is that you may be able to get one without doing an appraisal. Of course, you know what that means, right? If you're upside down on your mortgage you can stop pulling your hair out (for those who still have some left).

For instance, you bought a home in 2005 for $300,000 with a 3% down payment, therefore your FHA mortgage is $291,000. But, oops, 2007 rolls into town and the subprime crisis smacks us all in the face. Unfortunately you lose equity in your precious home and it's now only worth $270,000. The question is how can you refinance your $291,000 mortgage when your home is only worth $270,000??? At a $270,000 value you can only get another FHA mortgage for a max of approximatley $262,000. Subtracting $262,000 from $291,000 leaves us with $29,000 you'd have to pay out of pocket, plus closing costs of maybe another $5,000 or more. Do you have $34,000 of spare change to make the refinance happen? I'll be you don't, but if you don't have to be concerned about the value of your home to do the FHA refinance, you don't need $34,000. You'd only need the normal amount for closing costs, if that, because your lender may be able to absorb some of the costs for you. Plus, when you refinance you normally skip a mortgage payment. Just used the skipped payment money to partially pay for the closing costs and you're golden. You can drop your interest rate from where it's currently lingering to something more delectable like 5% or lower!

Some other beauties of the FHA Streamline Refinance...

You don't need to put down income or assets on the mortgage application. However, you will have to put down where you work.

Only your mortgage history is checked on your credit report. So, if you have a multitude of late payments, stop sweating bullets. (Of course, you don't have any late payments on your mortgage, right?)

The real deal is no appraisal...no credit check...no income check??? Come on...it's a no brainer. If you have an FHA mortgage, contact your lender immediately, give me a buzz or shoot me email for more details.

Also, Saturday evening and Sunday afternoon Black Men Magazine will be having its 15th Annual Male & Female Swimsuit and Fashion Show this weekend. Click on the COMPETITION tab on the website to get more information. I'll be there signing my book HOW TO GET A MORTGAGE DURING & AFTER THE SUBPRIME CRISIS.

Check out my website at http://www.getmeamortgage.net/.

Hasta la vista,

Kirk Charles
973-919-8065
kirkcharles@comcast.net