Mortgage Refinance Advice- The best online counselors to help you through FHA refinance application

The United Sates economy went through hell during the financial tsunami that hit it hard in 2008 after the collapse of the investment bank Lehman Brothers. It resulted in even the biggest and the most powerful American Corporations to be driven on the brink of collapse. Millions lost their jobs as a part of the austerity drives both by private corporations and governments. The big business were lent a hand of help to save their employees but hundreds and thousands of people associated with smaller business throughout the country took the brunt of the economic slowdown that ensued.

In facts millions of Americans are still reeling under the effects of the economic turmoil and slowdown. Hundreds and thousands of people lost their jobs or had their incomes reduced by drastic levels which resulted in unprecedented financial hardship for the masses. They started defaulted on their bills and loan payments. Many started running the risk of losing their homes due to nonpayment of their mortgages.

Obama administration started the making home affordable program to help millions of struggling home owners and step the downfall of the US real estate industry in general. FHA or the Federal Housing Administration too did its part by launching various FHA Home refinance programs to help the home owners.

Refinance home mortgage is one of the best ways to adopt for home owners aiming for a financial recovery. Refinance rates mortgage offered by FHA are at an all time low. There are options available for home owners to take advantage of it depending on their financial condition and need.

One of the popular options is to cashing out 85% of the home value through refinance. This will not only help in paying of the their erstwhile loan but also help in consolidating other high interest rate debts like credit card debts and personal loans. The extra could also be used for essential needs like financing children or spouse education or even to make yielding investments.

There is also an option given by FHA by which a home owner can cash out up to 96.5% of the value of the home. But for this option the homeowner has to qualify for some stringent condition like having a minimum credit score of 620. In case of someone who has had faced bankruptcy in the past then the minimum cooling off period for any FHA loan in 2 years and in case of a past foreclosure it is 3 years.

For Home owners who are just looking to reduce the burden of the monthly mortgage by reducing the interest rate as well as elongating the term of payment, then they should go for streamline refinancing. The FHA streamline refinance rates can be as low as 2%. For choosing the best available option and correct application guidance it is advisable to take help of a counselor who has expertise in mortgage refinance advice.

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