2021 FHA Streamline Refi Worksheet: What It Is and Why You Need It

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Posted on February 26, 2021

If refinancing has you thinking you’ll need piles of paperwork and hours of planning, think again.

The FHA streamline refinance is a simple program for current FHA borrowers. It lets you take advantage of great interest rates and home lending programs.

You can get out of a high-interest loan, shave down your current term or convert from an adjustable-rate to a fixed-interest mortgage with little work.

The FHA streamline refi worksheet makes it easy to see if it’s right for you.

Overview of an FHA streamline refinance

The FHA streamline refinance allows you to refinance your current FHA loan into a new one. It can be your ticket to a lower interest rate or better repayment terms.

The underwriting requirements are simple. A new appraisal isn’t required, making it easy to take advantage of this great program.

In other words, the FHA streamline refinance lets you refinance without as much hassle or legwork when you bought the home.

How do you know if you’re eligible or if the FHA streamline refinance is worth it?

Use the FHA streamline refi worksheet.

The FHA streamline refi worksheet

Why a worksheet?

Simple: because calculating your long-term savings with the FHA streamline refinance can help you decide if it’s the right choice for you.

The FHA streamline refi worksheet helps you determine your maximum mortgage amount.

When you know how much mortgage you can afford, the Good News Lending team gets to work. We'll find you the best rate and loan terms that make refinancing worth it.

There are two FHA streamline worksheets to use: an FHA streamline refi worksheet without appraisal and one with an appraisal.

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FHA streamline refinance worksheet with appraisal

The best part about an FHA streamline refinance is that an appraisal isn’t required.

But here’s the thing:

If you pay for a new appraisal, lenders base your new loan amount on your home’s most recent value.

This might leave more room to pay closing costs and upfront mortgage insurance if you wanted to roll those costs into your loan.

FHA streamline refinance worksheet without appraisal

Remember we said an appraisal isn’t required?

It’s true.

That’s where the FHA streamline refi worksheet without appraisal comes in. With it, lenders use your home’s original value from the assessment done for your existing FHA loan.

This is a good option to simplify the refi process. It also lets you want to take advantage of the market’s low interest rates.

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Why you might consider FHA streamline refinancing

The FHA streamline refinance helps borrowers become more financially secure.


But remember: it’s not a cash-out refinance. 


You can’t get any cash in-hand with a streamline refi.

This 3-Digit Number Can Save You Thousands! 

The average credit score for new, approved home mortgages is 732 according to the FHFA while borrowers with a 600 credit score or less make up just 6.5% of approved home loans.


What's your credit score?  Give the Good News Lending team a call at 901-651-9935 to discuss your options.


Here’s when an FHA streamline refinance might make sense for you:

  • If you had a low credit score when you bought your home and are in a better position now to qualify for better terms.
  • If you took an adjustable-rate loan initially but want to convert to a fixed-rate loan.
  • If you want to shorten your loan repayment term.
  • If interest rates have dropped since you bought your home, and you want to take advantage of lower rates without extensive underwriting.

To qualify, you must:

  • Already have an FHA-backed home loan.
  • Not be delinquent on your current FHA loan.
  • Have made at least six months’ worth of payments on your existing loan.
  • Have enough equity or cash on-hand to pay closing costs.
  • Prove you can reduce your term or lower your interest rate.

Lenders look back over the last 12 months of payments to review your payment history. To be in good standing, you must have no record of late payments in the past six months.


You must also have no more than one payment that was more than 30 days late in the past 12 months.

You Shouldn't Have To Choose


Too many borrowers think they must choose between the convenience of an online lender and the hands-on service you might get from the "small guys." 


But We Believe You Can Have It All!

The benefits of the FHA streamline refinance

Many benefits are available to borrowers who take advantage of an FHA streamline refinance:

  • Lower refinance interest rates
  • Mortgage insurance premium refund
  • May not require an appraisal
  • Reduced documentation requirements to qualify

So, what documents are needed for a FHA streamline refinance?

It can vary by lender and situation. Generally, you’ll need a current FHA loan mortgage note or statement, a copy of your drivers license or government-issued identification, a Social Security card and a copy of your homeowners insurance policy.

Why do you need an FHA streamline refi worksheet?

The FHA streamline refi worksheet calculates the maximum loan amount for which you may qualify.

It shows you what you can and cannot include in the loan. In short, the FHA streamline refinance may include:

  • The outstanding principal balance on your current loan
  • The new upfront mortgage insurance premium

Before you come to your total loan amount, you’ll subtract any eligible upfront mortgage insurance premium refund. 

Did You Know?

Mortgage rates have hit all-time lows in recent months.  Some people have been able to take advantage of the opportunity and secure a historically low rate. Since rates change all the time, give us a call at 901-651-9935 for an up-to-date rate quote.

Do I have to pay closing costs on a FHA streamline refinance?

The worksheet is also handy for determining your closing costs.

If you don’t have the cash to cover them, you may roll them into your loan.

But there’s a catch:

You can only do that if you use the FHA streamline refi with appraisal. If your home’s value is enough to cover the closing costs, you can include them in the loan amount.

Is a FHA streamline refinance worth it?

If you’re looking to save money on your mortgage, the FHA streamline refi can be a great option.

Keep in mind the FHA streamline refinance isn’t a cash-out refinance. Its main goal is to make your loan more affordable or attractive.

You can refinance without verifying your credit, income and possibly even your home’s value.

The FHA streamline refi worksheet can help you decide which route to go based on the savings available to you. 

About the Author

Ever since I was a child, I loved playing Monopoly and learned that borrowing money from the bank was actually a good thing.  "Your indebtedness today is your net worth tomorrow," my father would say!

I’ve been in the mortgage business since 2001 and we’ve helped countless families get the home of their dreams.

I believe the loan process should be the easiest part of buying a home. After all, your closing day should be a celebration, not a day of stress!

Wendy Thompson

Wendy Thompson - President of Good News Lending

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