Illinois (IL) Refinance Mortgage Rates
In the wake of record numbers of home foreclosures, many homeowners are protecting their lifestyles by refinancing. The Federal Housing Authority (FHA) has long offered a number of loan programs that let home owners enjoy lower interest rates, finance home repairs and upgrades, and even pull equity from their homes. A new FHA loan program also helps “under water” buyers keep their homes. Read on for details about FHA loans with low rates in Illinois.
Get Out from Under Water with an FHA Loan
As of late 2010, the federal government has sponsored the FHA Short Refinance option to help homeowners who are considered under water. People in this group owe more money than their homes are now worth. An Illinois homeowner may be eligible for the FHA Short Refinance if the following criteria are met: 1) they have a credit score of at least 500 and 2) their lender agrees to forgive at least 10% of the remaining principal on the first home loan. This program will be in place through December of 2012 and is available through FHA-approved banks.
The Short Refinance program may be one of the best strategies for saving a home. However, it’s likely to negatively impact a homeowner’s credit score and could involve tax penalties.
Pull Equity from Your Home with an FHA Loan
Homeowners who are better off and have built up equity in their homes can enjoy a no cost FHA Streamline loan. With this option, no home appraisal is needed and there’s no up front cost – yet a borrower can refinance their current mortgage for more than the home’s earlier appraised value. It’s possible to refinance up to 95% of the home’s value if it was appraised for $417,000 or under. A lower 85% rate applies to pricier properties. To be eligible for an FHA Streamline loan, a homeowner must have made on-time mortgage payments for at least the previous year.
Save Money with Low 30 Year Refinance Rates
Across Illinois, homeowners are struggling to keep up with adjustable rate mortgage payments. The FHA offers a way out with sensible, predictable fixed rate mortgages. The FHA’s thirty-year mortgages are the most popular in Illinois and especially in the Chicago area, where average property values are highest. The refinance mortgages rates on 15 year mortgages are usually the lowest, but 30 year mortgages let people enjoy lower monthly payments. Contact us for today’s lowest rates.
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