Refinancing a FHA Mortgage Loan

Buying a home is an exciting time in your life, but sorting through all of the financing options can be a challenge. If you do not think that you can qualify for a conventional mortgage through the best Las Vegas mortgage brokers, you can work with them to consider other options. An FHA mortgage might be the step up that you need on your pathway to becoming a homeowner.

Down Payment and Closing Cost Flexibility

With an FHA loan, the seller of the house is allowed to pay up to 6 percent of the home’s price for the closing costs. This means that a significant chunk of the closing costs could be paid for by the seller, leaving you with more cash in hand at the time of the closing. The FHA also allows for lower down payments and for your down payment to be a gift from a relative or your employer. (Read more about the benefits assuming a home loan here.)

Range of Loan Types

With an FHA approval, you may be able to get an adjustable-rate mortgage or a fixed-rate mortgage. An adjustable-rate mortgage refers to an interest rate that might go up or down after a fixed period of time, such as one, two or five years after the closing of your house. A fixed-rate mortgage keeps the same interest rate throughout the term of the loan.

Refinancing an FHA Loan in Las Vegas

If you have an FHA mortgage with an adjustable rate, and the rate has gone up by more than 1 percent, you might be able to refinance it. Refinancing essentially involves taking out a new mortgage, using the equity that you already have in the home and borrowing against it. You might consider loan refinancing if the interest rate recently dropped or if you need to do some renovations to your house.