That is technically true. An FHA stremline refinace is a program, as long as you have been current on your mortgage payments, which is a low documentation or no documentation mortgage refinance. Generally there is not an appraisal required. The key to a "true" streamline refinance is the new loan amount can not exceed your old loan amount plus your new up front mortgage insurance premium which, as of April 2, 2010 is now 2.25% of the loan amount. Up from the current 1.75%. Lenders can charge the usual origination charges and receive profit from the yield spread premium (profit from the rate). If your new mortgage balance is higher than the previous balance you will be required to obtain an appraisal and provide income documentation.

The FHA " Streamline" refinance is a quick option for lowering your interest rate with little or no out-of-pocket costs. Because it's a "streamline" refinance for customers who already have a FHA mortgage, there is no cash out with this FHA refinance. Its sole purpose is to allow existing FHA customers to take advantage of FHA rate and term refinancing easily. The FHA requirements for streamline refinance loan are simple: Your existing loan must be FHA-insured, current, and in good standing. You must have opened the loan at least six months prior to refinancing. You cannot be late, delinquent, or in default of any federal debt. Any subordinate financing may remain in place as long as it is subordinated on title. The borrower may not receive cash from loan proceeds in excess of $500. The streamline refinance must lower your interest rate, thus lowering monthly payments. The term of the new mortgage must be the lesser of 30 years or the unexpired term of the mortgage plus 12 years. A borrower cannot refinance from a 15 year loan to a 30 year loan. An appraisal is not required unless the closing costs are wrapped into the loan. Streamline refinances without an appraisal are limited to the unpaid principal balance, minus any refund credit of the mortgage insurance premium (MIP), plus the new upfront MIP if it is to be financed in the mortgage. No termite inspection report is required. Some FHA lenders offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed what is currently owed (i.e., closing costs may not be added to the new mortgage). Others offer "no cost" refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction. Should you have any further questions or would like to go forward with the FHA "Streamline" refinance you may do so on our quick and easy (refi) application on our website WWW.FHASUBMISSION.COM or call us toll free at 1-866-936-8478 Jeffrey Martino Young Essex Mortgage Bank a FHA direct lender..

Michael, thanks for the great info. Yes our new loan amount is not bigger than old and we have not been late. Thank you.

The name streamline explains it. it's suppose to be easy and streamlined. as long as you have been in your current FHA loan for 6 months without missing a payment you can lower your interest rate without having to go through all the refinance hassle. you have the option of getting it done with no appraisal and no income verification which those are the most time consuming parts of getting a Mortgage. at Baytree Lending we specialize in FHA loans. please feel free to contact me if you would like a free consultation on how much you can save by doing a Streamline Refinance. Thanks...Kevin Parham / 219-588-7334 / www.LocalMortgageBank.com

The other loan officers did a great job explaining it. I cant add anything to what they have already said. To get the very best deal, go to www.nocommisionloan.com or call me at 850-691-6598, Chris Williams, Green Street Mortgage