Refinancing with an FHA loan can prove to be an effective way to put the equity in your home to work for you. Keep in mind that an FHA refinance is only available to homeowners who currently use their home as their principal residence.

FHA loans have more relaxed credit-qualifying guidelines than conventional loans. Some areas where they are more relaxed in their credit guidelines are past bankruptcies and/or foreclosures, employment requirements, use of alternative credit and debt-to-income ratios. They also ensure that interest rates remain competitive with interest rates of conventional loans. You may refinance a conventional loan to a FHA loan.

AnnieMac Home Mortgage offers FHA fixed rate loans and adjustable rate loans:

• With a fixed rate loan, your rate is fixed and your payment remains the same throughout the length of your loan (i.e. 30-years, 25-years, 20-years or 15-years). A fixed rate loan is an excellent choice if you plan to live in the home for many more years.
• With an adjustable rate loan, your rate will adjust and your payments will fluctuate based on changes in the market. However, the rate and payment remains unchanged during the introductory period which would be 3 or 5 years. The initial rate for an adjustable rate mortgage is usually lower than that of a fixed rate loan. After the introductory period expires, the interest rate is subject to adjust at predetermined periods, usually every six months. The rate adjustments are based on market interest rates and the adjustment caps limit how much your interest can adjust in a specified period of time. An adjustable rate mortgage is a great choice if you don’t plan to own the home for a long period of time.

Loan to value ratios are often overlooked since the interest rate and loan term are the more important items to most people when refinancing. However, the loan to value ratio is a key factor in your application. Below is the maximum loan to value ratio that AnnieMac Home Mortgage can lend on for FHA refinances:

• Single-family primary residence – 97.75% on a rate and term and 85% on a cash-out

If your refinance is for a primary residence that is a two-family, three-family or a four-family residence, please call AnnieMac Home Mortgage to receive the maximum loan to value ratios.

FHA loan limits vary based on a variety of housing types and the state and county in which the property is located. Please call an AnnieMac Home Mortgage Licensed Mortgage Originator to discuss loan limits in your area.

FHA allows you to assume an existing FHA-insured loan. Or, if you are selling your home FHA allows a buyer to assume your FHA-insured loan. Assuming a loan can be very beneficial since the process is streamlined and less expensive compared to a new loan. Also, assuming a loan can result in a lower interest rate.

A streamline refinance allows you to reduce your interest rate on your current FHA-insured loan with the possibility of little documentation being required. This could save you and the lender some valuable time and money.

If the new loan amount and closing costs do not exceed the original loan amount, your streamline refinance may be done without an appraisal. In turn if your loan amount is higher than the original loan amount, your streamline refinance will require an appraisal to determine there is sufficient equity in the property. Investment properties may only be refinanced without an appraisal and are not eligible for an ARM product.

Requirements for a FHA Streamline:

Mortgage being refinanced must already be an FHA-insured loan
• You must be current on your mortgage payments
• The refinance must result in a lower monthly payment (both principal and interest)
• Cash-out is not available on a streamline refinance

AnnieMac Home Mortgage offers FHA fixed rate loans and adjustable rate loans:

• With a fixed rate loan, your rate is fixed and your payment remains the same throughout the length of your loan (i.e. 30-years, 25-years, 20-years or 15-years). A fixed rate loan is an excellent choice if you plan to live in the home for many more years.
• With an adjustable rate loan, your rate will adjust and your payments will fluctuate based on changes in the market. However, the rate and payment remains unchanged during the introductory period which would be 3 or 5 years. The initial rate for an adjustable rate mortgage is usually lower than that of a fixed rate loan. After the introductory period expires, the interest rate is subject to adjust at predetermined periods, usually every six months. The rate adjustments are based on market interest rates and the adjustment caps limit how much your interest can adjust in a specified period of time. An adjustable rate mortgage is a great choice if you don’t plan to own the home for a long period of time.

Loan to value ratios are dependent upon whether your loan is with or without an appraisal. Please call AnnieMac Home Mortgage to determine your maximum loan to value ratio.

FHA loan limits vary based on a variety of housing types and the state and county in which the property is located. Please call an AnnieMac Home Mortgage Licensed Mortgage Originator to discuss loan limits in your area.

FHA allows you to assume an existing FHA-insured loan. Or, if you are selling your home FHA allows a buyer to assume your FHA-insured loan. Assuming a loan can be very beneficial since the process is streamlined and less expensive compared to a new loan. Also, assuming a loan can result in a lower interest rate.

The average interest rates on jumbo mortgages are typically higher than those for conforming mortgages as they generally are considered higher risk due to the larger amount of money that is being borrowed.

AnnieMac Home Mortgage offers FHA jumbo fixed rate loans and adjustable rate loans:

• With a fixed rate loan, your rate is fixed and your payment remains the same throughout the length of your loan (i.e. 30-years, 25-years, 20-years or 15-years). A fixed rate loan is an excellent choice if you plan to live in the home for many more years.
• With an adjustable rate loan, your rate will adjust and your payments will fluctuate based on changes in the market. However, the rate and payment remains unchanged during the introductory period which would be 3 or 5 years. The initial rate for an adjustable rate mortgage is usually lower than that of a fixed rate loan. After the introductory period expires, the interest rate is subject to adjust at predetermined periods, usually every six months. The rate adjustments are based on market interest rates and the adjustment caps limit how much your interest can adjust in a specified period of time. An adjustable rate mortgage is a great choice if you don’t plan to own the home for a long period of time.

Loan to value ratios are often overlooked since the interest rate and loan term are the more important items to most people when refinancing. However, the loan to value ratio is a key factor in your application. Below is the maximum loan to value ratio that AnnieMac Home Mortgage can lend on for FHA jumbo refinances:

• Single-family primary residence – 97.75% on a rate and term and 85% on a cash-out

If your refinance is for a primary residence that is a two-family, three-family or a four-family residence, please call AnnieMac Home Mortgage to receive the maximum loan to value ratios.

FHA loan limits vary based on a variety of housing types and the state and county in which the property is located. Please call an AnnieMac Home Mortgage Licensed Mortgage Originator to discuss loan limits in your area.

FHA allows you to assume an existing FHA-insured loan. Or, if you are selling your home FHA allows a buyer to assume your FHA-insured loan. Assuming a loan can be very beneficial since the process is streamlined and less expensive compared to a new loan. Also, assuming a loan can result in a lower interest rate.