Tennessee (TN) Refinance Guide

Refinancing your home today can bring immediate and long-term benefits. With no cost or low cost home mortgage agreements, refinancing can be remarkably advantageous. Homeowners across Tennessee are taking advantage of low refinance mortgage rates for a variety of reasons: to avoid foreclosure, to free up funds for another down payment, or to pay for their children’s education. Many are using FHA (Federal Housing Authority) loan programs to secure the lowest interest rates and cash out their home equity.

Best Current Loans are Fixed

Recent foreclosures across the US resulted in part from adjustable rate mortgages. Many of these mortgages featured low introductory interest rates, but banks and other lending companies ultimately raised the rates uncomfortably high. Rates in Tennessee were especially burdensome, leading to the Volunteer State having the 12th highest foreclosure rate in the nation in 2008. Fortunately, the climate has changed and refinance options in Tennessee include fixed 15 year refinance rates as well as 30 year refinance options that involve more consumer protection.

Refinance without an Appraisal

Tennessee homeowners can use FHA Streamline to refinance without getting an intrusive home appraisal. The simple, low-stress FHA Streamline loan is especially designed for homeowners who have a consistent record of on-time loan payments. It is only intended for owner-occupied residences.

Repair that Fixer-Upper

Some homes need a lot of love before they can house a family. With that in mind, FHA offers the Streamline (K) Limited Repair Program. Home buyers can add up to $35,000 to their mortgages to improve or upgrade a home before moving in.

Upgrade Your Home or Rental Property with an FHA Loan

A special type of no-appraisal FHA Streamline loan is called the 203(K). These loans are for property owners planning home improvements, and they can be used for one-unit to four-unit dwellings at a time. (Large condominium developments are eligible, but construction must be staggered.) With the 203(K), the owner is able to combine the debt already owed on the property plus the cost of future upgrades. As an added bonus, up to six months of rental payments may be included in the refinanced mortgage if the property will be uninhabitable due to the planned rehabilitation.

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