Iowa Mortgage Rates

Freddie Mac released its weekly report today indicating that, while mortgage rates continue to remain at historic lows, they have dipped even lower this week than they were last week. Indeed, interest rates are also substantially lower this year than they were this time last year, according to Freddie Mac’s report.

Even without the option of taking cash from the refinance transaction, Iowa homeowners can save hundreds of dollars on their monthly mortgage payments by taking advantage of today’s extremely low interest rates through the Federal Housing Administration (FHA) Streamline Refinance program.

The FHA Streamline Refinance program drastically eliminates the amount of paperwork that has to be provided to the lender. The program’s requirements are minimal. A borrower does not have to demonstrate employment under an FHA Streamline Refinance. Income verification is not required and the borrower’s credit score is not checked. However, lender requirements may vary.

But, borrowers must be current on their existing FHA mortgage and the refinance must show a legitimate reason for refinancing, i.e., “net tangible benefit.” One example of a net tangible benefit is refinancing from an adjusting ARM into a fixed rate loan and, of course, there’s always the benefit in lowering monthly mortgage payments by obtaining one of the super low interest rates available today. The streamline refinance does not allow for cash out.

Borrowers are finding that obtaining a refinance through online resources is convenient. Instead of searching for a single lender to assist with an FHA Streamline Refinance, multiple lenders who are able to help borrowers with this program are available in one place. The online form is available for this purpose. Besides being convenient, it is fast as a response is returned almost immediately and added security is provided because a social number is not needed.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at about a 1 point origination fee.