FHA streamline refinancing gives borrowers more flexibility because if the mortgage rates drop, FHA customers can refinance for lower rates with no penalties. Streamline refinance loans are a great benefit for homeowners who currently have a FHA mortgage. The FHA Mortgage Loan Company recommends that any homeowner who has presently has an FHA mortgage should consider a streamline refinance if they have a mortgage rate at 6% or higher.

FHA Restrictions for Streamline Refinancing

• The current FHA mortgage being refinanced cannot be delinquent.

• The refinance is to result in a lowering of the borrower's monthly principal and interest payments.

• No money can be taken out on loan being refinanced using the streamline refinance process.

• The mortgage loan to be refinanced must already be FHA insured.