Shopping for an FHA Streamline Mortgage Rate

Getting the best FHA streamline mortgage rate should be a priority if you are in the market for that type of loan. An FHA streamline can help you in a number of ways. They are designed to be faster than normal and require less paperwork. They are there so that you can lower your monthly mortgage payment. Therefore, you will not be able to get any cash out as you could with a traditional refinance. Since you are going for the lowest possible payment, finding the best interest rate is important. Here are a few things to keep in mind if you are shopping for a low FHA streamline mortgage rate.

Check with Your Lender

In order to qualify for an FHA streamline, you already have to be an FHA customer. Since you are already dealing with an FHA lender, you might as well check with them for this loan as well. As long as you have had a good relationship with them during the first few years of the loan, you will usually feel comfortable working with them again for the second loan. You already know their procedures and their policies. You have worked with them for years and nothing bad has happened. 

In addition to the comfort factor, they will most likely not want to lose your business. Therefore, when you tell them your desires to get an FHA streamline refinance, they will usually offer you a pretty good deal to keep you around. 

Other Local Lenders

If it does not look like your current lender is going to be your best option for the FHA streamline mortgage, then you should immediately check out some other local lenders. It is always more convenient to deal with someone in your local market if you can. If something comes up, you can always just stop in and talk to someone about it. 

Go to all of your local lenders that have dealings with the FHA. They will all have almost the same programs. Therefore, the main difference will be the interest rate that they can provide you and the service. 

Online Lenders

If no one in your local market is stepping up with a deal that makes you feel comfortable, your next logical step is to check out the options that you have online. Online lenders are unmatched in convenience and speed. Most of the time, they will advertise their generic interest rates on their website. If you like what you see, you can take the time to apply. You should be able to apply right there on their website. This process is extremely easy and only takes a few moments. Once you apply, they might be able to give you a more accurate quote on your interest rate and closing costs. 

Regardless of who you go with on your FHA streamline mortgage, you need to shop around a little bit in order to make sure that you get the best deal. Your interest rate is the biggest factor in how large your payment will be. Therefore, you need to get the smallest interest rate that you can. 

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