Considering refinancing your home loan? There are many things you will want to think about that can help speed you to the application stage of your new loan. Here are some things you should consider when planning to refinance:

Type of Refinancing Needed

Are you searching for a Streamline Refinance for your existing FHA mortgage loan? Or do you need to refinance from a conventional or other non-FHA mortgage into an FHA home loan? Do you want cash out or just need lower payments? All these factors are important when choosing the FHA loan product that is right for you. An FHA Streamline has different rules and requirements than an FHA Cash-Out Refinancing loan.


Has the state of your credit changed since the original loan application? If you have missed payments or have late payments on your credit record in the last 12 months, consider waiting to submit an application until you can come to the FHA refinance loan process with 12 full months of on-time, reliable payments on record. Borrowers who are refinancing in order to catch up on missed payments will need to discuss their circumstances with the lender to see what type of refinance loan is open in such cases.

Financial Goals

Refinancing is often done with a specific financial goal in mind–do you seek lower payments? Do you want to refinance and simultaneously make upgrades or improvements in the home? An FHA Energy Efficient Mortgage may be an option to consider in such cases–don’t overlook this type of “add-on” to your loan if that’s the end result you have in mind for a cash-out refinance loan.

Term Of New Loan

15-year and 30-year loan packages are standard FHA loan terms–do you want a shorter loan term? Do you need a 30-year FHA refinancing loan? In most cases there should never be a penalty for early payoff with an FHA mortgage loan, so if you do choose a longer loan term, that’s one thing to keep in mind when planning your budget.


Remember that for certain types of FHA refinancing loans, you’ll need to pay for a new appraisal and credit check. With a new appraisal comes the potential for a required correction or repair to the property depending on the outcome of the appraisal. It’s best to anticipate having to pay for a follow-up inspection should such corrections be deemed necessary.


For more information concerning mortgages and FHA loans, contact our office in Joplin, MO to see how we can help you.