What is a streamline and How does it differ from a "standard" refinance?

Contrary to popular belief, basic FHA streamline transactions are very common. HUD created the FHA streamline program to help minimize the amount of HUD foreclosures and the amount of unnecessary interest that consumers pay mortgage companies and banks. FHA has permitted streamline refinances on insured mortgages since the early 1980's. The program has last been updated January 2009.  It differs from a "standard" refinance in that there is no minimum credit score, no appraisal requirement, no income, asset, or employment verifications. Update August 2009, Some lenders are now requiring some, or all of the above, however some are not. Please contact us for details.

Why don’t I have to requalify to participate?

Borrowers go through a lengthy and tedious application process WHEN they initially enter the FHA and VA program. When we assist them there is NO NEED for requalification with all lenders. The loan is basically the same. The payment is just lower. Credit is sometimes checked just to determine which institutions will accept the file, but HUD does not require that a borrower have a particular credit rating or any minimum FICO score. Obviously, if a borrower is able to pay a mortgage payment, they would be able to pay a lesser payment with ease. HUD is already insuring the mortgage at the higher payment. A loan with a lower payment would reduce their default risk.

If I enroll, will I lose the money and time that I have already paid into the loan?

The answer to this question is “NO”. You never lose money by enrolling for a rate reduction. Here are 3 reasons why:

Many uninformed consumers make one major mistake, which you must avoid at all costs...Do not make the mistake of tracking your loan progress by the number of payments you make. Instead track your loan balance. A rate reduction may allow borrowers to lower payments without adding fees to their balance. Your term may start over, but you get FULL credit for the principal already paid.

With some rate reduction options you can REDUCE mortgage terms (number of payments). This has a major impact on the amount of principal that they pay each month.

You can choose to keep the new loan balance the same as the existing loan balance. As long as the loan balance stays the same, you don’t lose money. For example, if your original loan was $100,000 and your current mortgage payoff is $95,000, the basis of your new loan will be $95,000.00. The consumer loses nothing, but receives a lower payment.

Keep in mind that a mortgage is just a tool to help you build wealth. There may be more effective ways to utilize your money. If you are concerned about your loan balance, interest that you pay or the time that it will take you to pay your loan in full, call and speak to one of our Mortgage Specialist for FREE. The worst news that you could get is that we can’t help you and you have to keep your existing loan. The best thing that could happen is us saving you money.

How much can you save me each month on my mortgage?

On average, most FHA and VA borrowers have missed at least 2 opportunities for free mortgage payment reductions because they don’t have the resources to identify the opportunities as they arise. We guarantee the best Apples-to-Apples Comparison and the best overall loan structuring.
As far as specific savings, the market changes too rapidly for anyone to post rates or pricing with any degree of accuracy. Newspaper, mail advertisements and Internet advertisements that post rates are generally accompanied by tons of fine print and exclusions. In addition, loan rates and pricing are based on very specific criteria. You should be very leery of anyone that offers any type of pricing, rates or terms without a general idea of your specific circumstances. We will gladly speak with you for FREE and give you an unbiased overview of ways you can improve your mortgage.
When you call…
* We will NOT require that you provide a lot of personal information to us to explain basic aspects of the program. You want to make an educated decision. We only collect information from you once we have decided to start the FREE enrollment process.
* We will tell you if working with us is or is not in your best interest. When you call, we will ask some very basic questions and try to determine if and how we can help you. We acknowledge that some people are better off not enrolling in the program. Keeping your best interest first, we will only work with clients that we sincerely believe we can help.
* You will not be harassed, hard-sold or pressured. We do not employ commissioned loan officers (loan sales people). We don’t want you to have to fear whether you are getting the best advice or being sold a product that pays the highest commission. If you feel that our program is not the best option for you, we GUARANTEE that you will not be pressured in any way. We are professionals and as professionals we acknowledge that our program is not for everyone.

Will my credit or payment history prevent me from participating in the program?

We help people with A++ credit to Z credit. Our only concern is that you have an FHA or VA loan. Your overall credit history will NEVER prevent you from enrolling. In addition, HUD only requires that we examine your mortgage history for the past 12 months. Those who have been late on their mortgage payments in the past CAN enroll and benefit. Bankruptcies and other credit issues do NOT disqualify participants from enrolling.

Why hasn’t my current mortgage company contacted me about this program?

Obviously your mortgage company makes money off of your loan each month. The higher your interest rate, the greater their profit. Unlike banks, we NEVER service your mortgage. We have no conflicting motives in helping you structure and keep the best loan terms.
Here are more things to consider:
A. If your mortgage company already has you paying more, why would they encourage you to pay less?
    Money You Pay Each Month = Their Profit
B. Most banks, brokers and lenders are structured to do refinances or even streamline refinances, but very few lenders are equipped with the adequate resources to provide full rate reduction services.
C. Rate Reductions are beneficial for borrowers, but not the most profitable loans for institutions to offer the public. We work on high-volume which allows us to help people and remain profitable.

Why aren’t FHA Streamline Rate Reductions advertised?

HUD created the Rate Reduction Program to minimize the amount of HUD foreclosures and the amount of unnecessary interest that consumers pay mortgage companies and banks. Assisting borrowers with a Rate Reductions is far less profitable than a traditional refinance for the mortgage lender or broker. There would be no benefit for banks and mortgage companies to promote programs that could cut their profits by saving consumers money. Their first priority, in business, is to make money.

Is a Streamline the same as refinancing?

Any time you alter your mortgage it is technically a refinance transaction. However, there are MAJOR differences between traditional refinances and FHA/VA streamline rate reductions.

Traditionally a refinance transaction involves a credit, income, and asset review. A Streamline DOES NOT require credit and income requalification.

Traditionally a refinance transaction requires an appraisal. A Streamline DOES NOT require an appraisal.

Traditionally a refinance transaction will take the mandatory state and local fees in addition to the basic title fees and ADD them to the existing loan balance. A Streamline allows borrowers to have the BANK PAY the settlement costs.

Calling a Streamline a refinance is like calling a lion a cat. It is a refinance in the sense that the consumer receives a new loan, but without ANY of the negative factors.

Why did HUD create the Rate Reduction Program?

HUD does not benefit from consumers paying higher-than-market mortgage payments; however, they recognize that higher mortgage payments increase probability of mortgage defaults and foreclosure. Ultimately, homeowners stuck in higher-than-market mortgage payments that result in default or foreclosure will force HUD to repay the entire loan amount to the lender.
Do not make the mistake of believing that this program was designed to only help people that are having difficulties paying their mortgage. HUD designed this program to help everyone save money. HUD understands that when homeowners receive lower mortgage payments, they can use the money saved to eliminate other debts and stimulate the economy. People with hardships can find this program helpful, but who can’t afford to save money?

What can NSM do for me that other mortgage companies can’t?

There are 3 reasons that FHAStreamline.com is probably the best solution for lowering your mortgage payment.

We have already helped THOUSANDS of homeowners. We help more people each day. In addition to the testimonials that we have from satisfied clients, we have a track record that speaks for itself. Few institutions can provide you with the successful payment-reducing strategies that we have applied to over 15,000 loans without charging you a fee or adding fees to your loan balance in most cases.

Our employees are paid salaries and are concerned with helping you and not focused on lining their pockets. The programs you select will not alter their compensation. They can give you unbiased information WITHOUT any high-pressure sales pitch. Over 90% of all of our competitors’ loans were originated by commission-driven loan sales people (loan officers).

WE SPECIALIZE IN ONE PRODUCT! We don’t offer 100 other loan programs. We feel that it is impossible for any entity to be the best at everything. We focus all of our research and resources on the FHA Streamline Program to provide you with the most up to date and effective strategies available.

What is the difference between “No Costs” vs. “No Closing Costs” Programs?

No Closing Costs

The lender/bank/broker does not charge a direct fee for their service to the consumer.

The consumer MUST PAY the customary title (settlement) and recording fees in cash or add them to the new loan balance.

The consumer must also set up a brand new escrow account in cash or add it to the new loan balance

No Costs

The lender/bank/broker does not charge a direct fee for their service to the consumer.

The consumer DOES NOT pay the customary title (settlement) and recording fees.

The lender/broker/bank does NOT add the customary title (settlement) and recording fees to the loan balance.

The consumer DOES NOT have to set up a brand new escrow account in cash or add a new escrow to the new loan balance.

The lender/broker/bank transfers the old escrow account to the new loan.

Is FHAStreamline.com a government agency?

Absolutely not! We are an independent entity that has been licensed by HUD to originate and modify FHA and VA mortgages. The official name of our company is Newport Shores Mortgage, Inc. Although we promote a government-backed program we are NOT a branch, division or subsidiary of any government body. Some of the programs that we promote were created/facilitated by HUD, but we operate as an independent service provider.