FHA loan refinancing is a great way to refinance a home without losing money or threatening a good interest rate. FHA refinancing offers homeowners the opportunity to use their good standing with their current bank in order to obtain a lower interest rate and possibly a lower payment. The only thing that won't change is the amount that the loan is for.
When shopping around for FHA loan refinancing it is important to consider a couple of things. There are certain pieces of information needed to have in order before applying for FHA loan refinancing. Social security numbers need to match the name of the person applying for the loan. This may sound silly, but if recently married or divorced the wrong name may be on record with the right social security number. A major requirement for FHA loan refinancing is to have at least 6 months of on time payments to show the loan officer responsibility enough to pay your new loan on time.
Other factors to consider when looking at FHA loan refinancing are credit rating, residential status, and income. With FHA loan refinancing interest rates may be better and may be able to qualify more easily because FHA loans allow a higher percentage of income towards a house payment. This is good because it will make it easier for someone with blemishes on their credit to refinance. FHA loan refinancing still requires good credit, but there are a lot of factors that are considered when deciding whether or not a person gets a loan.
Even though FHA loan refinancing allows the use of an extra percentage of income towards the house payment, the best thing to do is sit down and figure out a budget. Banks may say that 28% of your income is available for a mortgage payment, but they may not be considering a car that needed to be fixed that is still paying on or 4 kids with braces. Everyone's life is different and cannot simply be generalized by a percentage of income. The last thing to do is get in over your head with a mortgage payment. Its one thing to lose a car, but it's a whole other thing to lose a house because of non-payment. God knows how we should use the money He has entrusted us with. Pray for guidance of where He this situation to go. God doesn't make mistakes, but people do. Follow His guidance and be patient for His answers.
http://www.christianet.com/refinancemortgage/fhaloanrefinancing.htm
