Streamlined Refinancing
Definition of "Streamlined Refinancing"
Refinancing that omits some of the standard risk control measures and is therefore quicker and less costly. The rationale for streamlined refinancing is that, while it is an entirely new loan, the information from the previous loan available to the lender retains validity. In addition, valuable information may be available on the borrower's payment history. The extent to which a lender can offer streamlining depends on how much information and how much discretion the lender has. A new lender that was the original lender and still owns the loan has the greatest leeway. A new lender that was the original lender but is now servicing the loan for someone else has the same information but less discretion. A new lender that was not the original lender and is not servicing the old loan doesn't have the information needed to justify streamlined refinancing.
Popular Mortgage Terms
Refinancing for an amount in excess of the balance on the old loan plus settlement costs. When the main objective of a refinancing is to raise cash, the relevant question is whether the ...
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Insurance provided the lender against loss on a mortgage in the event of borrower default. In the U.S., all FHA and VA mortgages are insured by the federal government. On other mortgages, ...
A lender who offers mortgage loans directly to the public. ...
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A mortgage on which half the monthly payment is paid every two weeks. This results in 26 payments per year, which is the equivalent of 13 monthly payments rather than 12. Because of the ...
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The definition of an assumable mortgage is what happens when a buyer assumes or takes over a mortgage that the seller contracted. This is a type of financial arrangement that passes an ...
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