For 1-2 years now I've been receiving scam-looking letters in the mail, telling me I'm qualified to re-fi for a much lower rate. I've pretty much always tossed them away, but today I decided to look more into what's going on.
I'm obviously not going to use one of those "scam" lenders, but it would appear I do qualify for an FHA Streamline Mortgage, and there's more info here: HUD Streamline Your FHA Mortgage
I ask because we are about $25,000 "underwater" on our property. The market was low when we bought, but it's gotten lower. We also have a rate of 4.875%, but I'm seeing rates around 3.5%, which would be awesome to get.
So I want to know:
- Do I qualify?
- What are the catches here?
- Can you tell me more?