A borrower with an FHA loan wants to refinance to get a lower interest rate. The FHA offers a streamline refinance program. What is a key feature of an FHA streamline refinance?
Correct Answer
D) It allows existing FHA borrowers to refinance with reduced documentation, often without a new appraisal
The FHA streamline refinance allows existing FHA borrowers to refinance with reduced documentation and paperwork. In many cases, a new appraisal is not required, making the process faster and simpler.
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Related Topics & Key Terms
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Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
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