Posted by Anonymous on 11/15/05 5:22pm
Msg #76795

Super Streamline Loan

What is a super streamline loan?? It doesn't mean piggyback loan does it ??
Thank You

Reply by NM_CO on 11/15/05 5:28pm
Msg #76797

Streamlining is when you refi again when the initial term is up. i.e. for a 2/28 you would refi in 2 years and "streamline" into something else.

Reply by NM_CO on 11/15/05 5:32pm
Msg #76799

Maybe I should also add, it's done often if a br's credit is bad now but might be better later, often or as so they say, lo's will do it for free "the next time around". It's also done often so the lo can get another "instant" loan in two years sorta speak.

Reply by Anonymous on 11/15/05 5:33pm
Msg #76800

Thank You, Now It rings a bell after you say it. Thank you Very Much.

Reply by PAW_Fl on 11/15/05 6:52pm
Msg #76815

In the early 1980’s FHA started a program called “Streamline Refinances” on insured mortgages. Streamline Refinances does not refer to a loan where there are no costs incurred during the process. It refers only to the amount of documentation and underwriting performed by the lending institution.

Some standard guidelines associated with a “Streamline Refinance”:
-The mortgage to be refinanced must already be a current FHA-insured mortgage.
-The FHA- insured mortgage to be refinanced should be current (not delinquent).
-The refinance of the FHA-insured mortgage is to result in a lowering of your monthly principal and interest payments.
-No cash may be taken out on FHA-insured mortgages refinanced using the streamline refinance process.

Reply by ReneeK_MI on 11/16/05 4:12am
Msg #76860

As a side-note to scribble in the margin of Paul's response (which, of course, is correct, concise and always accurate =)

Lenders have taken the term "Streamline" and use it in reference to their own products as well. For example - if XXX Mtg. co is currently the mortgagee, and a refi is done that fits their particular "Streamline" guidelines and they will continue as the mortgagee. Typically, it would be a rate & term (no cash out), within a particular time frame, etc. etc. The biggest 'perk' to doing a Streamline is a new appraisal isn't typically required - saving time & fees.