Refinancing An Fha

Expert, localized Los Angeles answers provided by Heather Roy

Refinancing An FHA
	Dear Edith: I bought a home through FHA at 7 percent interest. For the past two years or so, I have been receiving information from mortgage companies claiming I can refinance and reduce my interest rate with no closing costs. I was wondering if these programs are legitimate? Most are advertising a rate of 4.5 percent, which would be a good break from my current mortgage payment.

	Read the fine print on those offers. They may involve artificially low introductory rates for limited periods of time, on adjustable-rate mortgages. Decide for yourself whether it's worth the risk of rate hikes in the future. Meanwhile, with your present loan you could ask for "streamline" refinancing, available for any FHA mortgage through your present lender or even with another one. It's a low-cost way to drop your rate to current levels.
	Edith Originally published on April 11, 2005

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Refinancing An FHA