The FHA-to-FHA streamline refinance, rule by rule
The net tangible benefit test
Rule check
Every streamline must leave you better off in a way HUD defines: a lower combined rate, a move from an adjustable rate to a fixed rate, or a shorter term that results in a financial benefit. The combined rate is the interest rate plus the annual mortgage insurance premium rate. The handbook's chart sets the exact reductions required for each situation.
Last reviewed against the primary sources listed below.
Questions for your lender
- What is my current combined rate and the new one?
- Which line of HUD's benefit chart applies to me?
- Does the new term reduce or reset the time left on my loan?
Streamline questions
What is the combined rate on an FHA loan?
The interest rate plus the annual mortgage insurance premium rate, as HUD defines it for the benefit test.