Ready To Refinance? 4 Things You Should Know About The USDA Refinance Streamline Assist Program
If you purchased your home when rates were high, and you want to take advantage of the new lower rates, now's the time to streamline your mortgage. One of the best ways to do that is through a USDA streamline assist program. USDA streamline refinance loans are a great way to refinance your home at a lower finance rate. The lower interest rate will reduce your monthly payments, allow you to pay your home off sooner, and reduce the overall cost of your home. Here are four things you need to know about the USDA refinance streamline assist program.
Your Current Loan Must be USDA
If you're looking to refinance your home, and you want to participate in the USDA refinance streamline assist program, your current loan must be through the USDA program. Without participation in the USDA mortgage program, you'll be unable to refinance to a new lower interest rate mortgage.
You Need to be Current on Your Payments
If you want to refinance your home through the USDA refinance streamline assist program, it's important that you remain current in your payments. Any late payments within the past year will prevent you from qualifying for the USDA refinance program. If you're currently behind on payments, postpone your attempts to refinance until you've made at least twelve consecutive on-time payments on your current home loan. Once you're current on your mortgage, you can apply for a USDA refinance streamline assist loan.
You Must Meet Eligibility Requirements
If you're going to apply for a USDA refinance streamline assist loan, you need to confirm that you meet all necessary eligibility requirements. First, confirm that you have no blemishes on your current credit history. If you do, clear those up as soon as possible. Second, ensure that you meet the basic employment requirements. In most cases, you'll need to have had at least two years of full-time employment. Finally, if you've filed for bankruptcy, make sure that you wait for at least three years before applying for a refinance loan.
You Can Avoid Appraisals and Pre-Payment Penalties
If you want to refinance your home using a USDA refinance streamline assist program, you won't have to worry about appraisals. This refinance program allows you to refinance your home to a lower interest rate without the lengthy appraisal process. Not only that, but once you refinance, you won't have to worry about pre-payment penalties. With a USDA refinance streamline assist loan, you can pay off your home early, without the risk of penalties or fines.