Missouri Mortgage Rates

The Department of Housing and Urban Development (HUD) has offered streamlined mortgage refinances since the early 1980s, but more recently the federal agency has made it easier than ever to qualify for this quick type of home loan. For homeowners with poor credit, the FHA streamline loan is attractive because it does not have a credit score requirement and several banks will even approve an FHA streamline loan without doing a credit check whatsoever.

For this reason, Missouri homeowners who have fair or poor credit for whatever reason may find that they qualify for an FHA streamline refinance whereas they would not qualify for any other type of home loan or home equity line of credit.

FHA streamline loans can also be approved without a home appraisal, as long as the amount of the loan does not exceed the amount of the loan already in place. No-appraisal FHA streamline loans are a fast-track loan that homeowners can get no matter how much they owe on their house or how much the house is worth. Banks are able to offer this type of loan because the United States government, through the FHA, will guarantee payback of the loan.

To make FHA streamline loans easier and more affordable for homeowners, the HUD Department lowered upfront mortgage insurance premiums required on the loan to 0.01%, meaning FHA mortgage insurance premiums on a $100,000 loan will cost just $10, whereas they used to cost $1,000. With this lower upfront insurance premium, closing costs for FHA streamline loans are lower than they have ever been.

According to data provided by the Wall Street Journal, the average homeowner in the state of Missouri owes $127,340 in outstanding mortgage debt. Refinanced with a FHA streamline refinance, upfront premiums would cost just $12.73 for an FHA streamline loan, and monthly mortgage payments for a 30-year fixed-rate mortgage would be lower too. If a loan for this amount was refinanced at 3%, the monthly payment would be just $536.87. Since this is the average rate tracked by Freerateupdate.com, getting an FHA-streamline loan at this rate is easy for homeowners who shop around.

For Missouri homeowners who are underwater on their homes, an FHA streamline refinance is an opportunity to lower monthly mortgage payments at minimal cost, thanks to the more relaxed requirements for this type of loan. To qualify, homeowners need to have an FHA-guaranteed loan in place that has remained current for the past 12 months.

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.