Most homeowners with FHA and VA mortgages can refinance their loans without credit checks, qualifying ratios, appraisals or just income verification. Streamline mortgage refinancing can save you a lot of money because there is no cost for the transaction. The new mortgage must lower your monthly payment and the catch is that you cannot take cash back act closing. Your must also not have any late mortgage payments for the previous 12 months. One frequently overlooked feature of an FHA or VA mortgage is streamline refinancing. Streamline refinancing is a unique and extremely desirable feature of FHA and VA mortgages that allows hassle free mortgage refinancing. Here are several things you need to know about FHA and VA streamline mortgage refinancing.

One example where FHA and VA mortgages saved many homeowners from a mortgage nightmare was the refinancing boom of the 1990s. Many homeowners used Adjustable Rate Mortgages to purchase homes in the 80s, and when the recession hit the value of their homesdropped as much as 30%. The drop in property value prevented many homeowners from refinancing because they were upside down, owing more than their homes were worth. Homeowners with FHA and VA mortgages did not have this problembecause they qualified for streamline mortgage refinancing. Streamline mortgage refinancing will allow you to convert your Adjustable Rate Mortgage to a fixed interest rate, even if the resulting payment will be higher than what you are currentlypaying. If you are concerned that rising mortgage interest rates will make your mortgage payment unmanageable, streamline mortgage refinancing will give you costeffective peace of mind. Homeowners with tight budgets and a low tolerance for financial risk should consider streamline mortgage refinancing to avoid payment shock.