The FHA does permit streamline refinances on insured mortgages. The term "streamline" refers to the amount of documentation and underwriting which needs to be performed by the lender, and does not mean there are no costs involved in the transaction.
This refinance option is considered streamlined since it allows you to lower the rate of interest on your current property mortgage loan quickly and frequently without an appraisal.
FHA Streamline Refinancing also reduces the amount of paperwork that needs to be filled out by your mortgage lender, saving you precious time and money.
To qualify for a Streamline Refinance your original home mortgage loan must be an FHA mortgage loan in good standing and the refinance needs to lower your monthly interest payments.
Refinancing with this option reduces your monthly expenses by lowering your mortgage payments, also keep in mind that doing a cash-out is not an option with the FHA Streamline Refinance.
This works well for borrowers who are in good financial standing without any substantial debt since it permits you to have a little additional money each month that can be put to good use elsewhere.